Griffith Central is under external administration but continues to trade. Photo: Oliver Jacques.
Griffith Central, the town’s main shopping mall, has been placed under external administration, but continues to remain open and trade as normal, an exclusive Region investigation has found.
A notice filed with the federal business regulator stated a NSW Supreme Court order appointed Sydney-based business restructuring expert Andre Lakomy as the receiver and manager of the mall on 29 May, 2024. He remains in this role.
“The shopping centre is open for business and we hope the public continue to support it,” Mr Lakomy told Region.
He declined to provide any information on why the mall was placed under administration.
A receiver is generally appointed to manage an asset at the request of a creditor – someone owed money by the asset.
It does not necessarily mean the company is in liquidation or about to wind up.
Region had previously reported that the mall was also briefly placed under external administration on 11 June, 2022. This period of external administration ended on 15 July, 2022.
Griffith Central is owned by 69-year-old Griffith businessman Frank Violi.
He is the sole director and shareholder of the company F & L Violi Pty Ltd, the entity placed in external administration on 29 May, 2024. Mr Lakomy has taken management of two F & L Violi Pty Ltd assets – a property at Strathfield and the Griffith mall.
Mr Violi also declined to comment on the latest developments.
In 2023, Region reported Griffith Central was at the centre of a multimillion-dollar loan dispute.
The mall was allegedly put up as security for loans worth $22 million, according to Supreme Court documents.
However, Mr Violi says he was a victim of fraud and this security was granted without his knowledge or consent.
He was named as a defendant in an ongoing non-criminal Supreme Court case being contested between two large investment firms.
According to court documents, Gemi 169 Pty Ltd allegedly lent Suria Global Pty Ltd $19.5 million in March 2020.
The company F &L Violi Pty Ltd was alleged to be one of the guarantors of that loan.
The court was told a mortgage was allegedly taken out over the shopping mall as security under the loan.
The NSW Supreme Court in Sydney has heard a civil case involving the Griffith mall. Photo: Wikipedia.
Lawyers for Gemi 169 state the company made a second loan of just over $2.5 million to Suria Global in January 2021, with F & L Violi again allegedly one of the loan guarantors and the mall again used as security.
In January 2022, GEMI 169 issued default notices to Suria Global and F & L Violi, alleging repayment of the loans was overdue.
Mr Violi denied knowledge of either loan and said he was a victim of fraud, claiming the securities were granted without his knowledge or consent.
He said the ‘’Frank Violi’’ signature on loan documents was not provided by him.
Gemi 169 took Suria Global, Mr Violi and other parties to the Supreme Court to contest the matter.
That court case remains ongoing. It is being contested in the Supreme Court’s civil jurisdiction, meaning it relates to money or property and is not a criminal matter.
Mr Violi has not been charged with any offences in relation to this loan dispute.
Griffith Central first opened its doors in October 2007, instantly becoming the biggest shopping centre the town had ever seen.
It was originally owned by Melbourne-based investors but was purchased by Mr Violi in 2019.
Speculation about the mall’s future has circulated around town since then, but it has continued to attract new retailers as tenants. Popular shoe franchise Platypus opened a store in June 2023.
It was rumoured that Dan Murphy’s would also launch in the mall last year, but the state alcohol regulator rejected the retailer’s application for a liquor licence in Griffith.
Loading ...
