Mr. Danziger contacted Australian Coast2Coast, Marlin Brands, after he acquired his home goods wholesale company headquartered in Melbourne Albi for 2016 for $ 50 million in 2016. Albi supplies several large retailers, including Myer, David Jones, Adairs and Freedom.
Marlin Brands Australia provided a guarantee to Danziger DJD Equities in July 2017.
Marlin Brands Australia, registered in Malta, is said to have pledged a principal and interest of $ 5 million in accordance with an agreement with DJD Equities.
The agreement was guaranteed by UK-registered Coast2Coast Technologies and Marlin Brands Enterprises, registered in Malta.
However, DJD Equities claims that Marlin Brands Australia was unable to pay off its debt in accordance with the agreement reached on November 30. DJD claims that Marlin Brands Australia later “failed and refused” to pay the principal after notifying demand in December.
The Australian company Marlin Brands is owned by C2C Capital, a company associated with Coast2Coast.
Due to the complex structure of the group, including the use of several offshore companies, this case may not affect the Australian registered unit to be sold.
Representatives of Marlin Brands in Australia declined to comment.
Mr. Danziger is represented in the court case by respected lawyer Sam Bond from SBA Law. Mr. Bond also declined to comment.
September reports indicated that Marlin’s investment bankers at Moelis estimate that the accumulation of household goods registered in Australia could generate up to $ 400 million.
This estimate was based on optimistic forecasts that the group would increase its profits by 30 percent to $ 50 million over three years to 2021, despite the current weakness of the retail market.
Mr. Danziger, the former managing director of Priceline before selling it to the Australian pharmaceutical industry, had to stay in the Marlin group at least three years after the sale in order to improve brand performance in line with Coast2Coast strategy. However, Mr. Danziger left in 2017.
Sarah is a reporter for business ships from Melbourne.