According to a story on www.goldcoast.com.au, Mustang has been put under control of Sydney-based receiver Steve Sherman. Sherman released a statement on Friday after taking control of the business saying that he was hopeful of finding a buyer.

The website reported that both of its Molendinar factories were locked, and that angry workers were turned away by security as they tried to retrieve their tools.

The story said that the company had been seeking to relocate its manufacturing facilities to Asia.

The receivership comes almost two years after Mustang's board of directors announced they would invest AUS$10 million into the business for an expansion into export markets. The company said it wanted to increase exports from 20 to 50 per cent of total sales. That announcement followed a $65 million management buyout from former owner Gary Garoni.

Sherman said the receivership was in its early stages. "We are assessing the situation and are working closely with all stakeholders of the business in order to maximise the value of the Mustang group," Sherman told the website. "We hope to be able to find a buyer for the business in a relatively short period of time."

Sherman said he wants to maintain the business as a going concern. "Our ability to continue the operations of the business depend upon achieving co-operation and support from the key suppliers to the business, including the landlord of its premises," he said in a statement. "We are hopeful that these parties will appreciate the commercial sense in protecting the business and agree to work with us in maintaining the business operations while a purchaser for the business is sought."

(25 October 2007)