Story-i’s Indonesian venture collapses, calls in receivers with $3.5 million of unpaid liabilities

If they weren’t already one of the most confusing companies to be listed on the ASX, retailer Story-I (ASX: SRY) is likely to undergo wholesale changes following their exit from Indonesia where their primary business operates as a technology products reseller, leaving behind more than $3.5 million in unpaid liabilities. 

The departure comes following the collapse of their Story-i business, an Apple reseller that has collapsed and been placed into receivership after years of financial turmoil, exacerbated by the COVID-19 pandemic and economic headwinds.

Story-i’s Indonesian subsidiary, PT Inetindo Infocom (PII), has been struggling with mounting losses for four consecutive years. The outstanding debt now totals IDR 38.2 billion (AUD $3.58 million). However, due to the Company’s strategic structuring, these liabilities are isolated within the subsidiary and do not impact the ASX-listed parent company, Story-i Limited. 

The receivers face the challenging task of working closely with PII and its creditors to address the substantial debt, which includes an inter-company loan of about AUD 3.5 million owed to Story-i.

The financial struggles of PII have been attributed to 2 years of pandemic-induced trading interruptions that severely disrupted business operations, weakened customer spending and low profit margins which are well known within the retail industry around Apple products. 

Story-i had previously attempted to offload the struggling business. However, negotiations fell through in late November 2023, forcing the company to explore other potential buyers, ultimately without success.

Story-i is pressing forward with efforts to finalise its financial audits. The Company is working with its Indonesian auditor to complete the necessary accounts, which will be submitted to the receivers. Concurrently, Story-i is collaborating with its Australian auditor to finalise and submit its financial reports by mid-June.

Looking to the future, Story-i is focused on streamlining its operations and pursuing new business opportunities. The company is currently in advanced discussions with a client of Singapore-based Indian Ocean Capital Advisors (IOCA) which could utilise the current assets for a new ASX-listed venture. 

Notably, IOCA is also a Convertible Note holder, a relationship disclosed to the ASX in January 2024 with Story-i to proceed as the ASX’s newest ghost company until a deal can be struck.