Harvey Norman’s dairy JV Coomboona Holdings enters administration

Australian retailer Harvey Norman has announced that its jointly-owned dairy farm Coomboona Holdings has entered into administration.

In 2015, Harvey Norman bought 49.9% stake in the dairy farm for $34m. Last month, the retailer wrote down $20.7m of its investment in the dairy farm in its first half earnings of fiscal year 2018.

National Australia Bank (NAB) has been appointed as receivers while Ferrier Hodgson will be administrators of Coomboona Holdings.

Harvey Norman has claimed that the joint venture partner (JV) of Coomboona Holdings needs to pay back almost $18.5m of outstanding debts, causing a dispute between the two. Harvey Norman was also in dispute last month with its JV partner Eternal Sound regarding the dairy farm’s future plan.

NAB receiver Peter McKenzie Anderson told The Australian:  “We are in the process of conducting a review of the financial position and operations of Coomboona with a view to stabilising the business while we run an orderly sale campaign. We will be in communication with all relevant stakeholders and will be providing updates as appropriate.”

Harvey Norman founder Gerry Harvey reportedly invested in Coomboona due to the por performance of the retail sector.

Harvey told News.com.au : “You have got to look around to try to find out where you can put your money and try and make some money. It’s not that bloody easy.”