Evolve owner answers questions on Poolrite licensing deal

Rumour and speculation have been rife in the swimming pool industry following the Evolve licensing deal to manufacture and market Poolrite products. Some of this speculation includes suggestions that 'Ty Hermans is an old friend of Ross Palmer and is paying the license fee to a company not under administration'; and that 'Evolve acquired the tooling to bypass the claims of the creditors'.

SPLASH! put a number of questions to Ty Hermans and all have been answered; where relevant some questions have also been clarified by the administrators, SV Partners.

Tooling still owned by Poolrite Australia

Hermans says he is utilising the tooling to manufacture product but could not possibly be “asset-stripping” as some industry members have speculated, because the tooling is not owned by him – he is merely using it to produce the Poolrite equipment under license.

“It’s not asset stripping by any means,” he says. “The tooling remains the property of Poolrite Australia. Evolve doesn’t own it.”

Anne Meagher, Director of voluntary administrators SV Partners confirms the tooling is still owned by Poolrite Australia Pty Ltd.

“The tooling has all been recorded and it is subject to the licensing agreement,” she says. “I know some staff were concerned but it’s all been accounted for. Any licensing fee would come through us as administrators. There can’t be an asset strip – Westpac is a secured creditor and we are reporting to Westpac,” she says.

Licence fee goes to Poolrite Australia

Hermans says any license fees when paid will go to Poolrite Australia Pty Ltd, one of the companies currently under the administration of SV Partners.

The administrator, David Stimpson of SV Partners, says that so far only a heads of agreement has been signed and no monies have been paid as yet.

“If it potentially gets to a point where we would finalise a licensing agreement, the monies would come through me as administrator of Poolrite Australia Pty Ltd,” says Stimpson.

Hermans says: “The simple fact is that this business had been on the market for months, ever since Ross Palmer announced he was looking for a buyer or investor. No-one else got in there with their money. Evolve was the only one who put up their money and got involved.

“If the company gets broken up there will be no staff getting employed and the creditors would get nothing. We think this is the best option they have – I only wish we were there earlier and helped before it got to this stage.”

Hermans is adamant he would not put his successful business in jeopardy, saying he’s just signed some very big contracts in the mining sector.

“There’s no way I am going to do something to jeopardise my existing businesses. I’ve made sure everything is more than aboveboard legally and morally.”

No prior relationship with Ross Palmer

Hermans says he only met Palmer recently and had no previous relationship with him.

“Personally, I met Ross for the first time four or five weeks ago.”

Some rumours have circulated that 'Hermans is a friend of Palmers from the motor racing scene', after seeing images on the internet of Hermans and Evolve staff with racing cars. Hermans says that is not the case.

“No, I’m not into racing at all really. The V8 Supercars was literally just getting some cars for a corporate day. We’ll do it again, but I’m not into car racing.”

Other speculation includes suggestions that Hermans has an interest in one of Palmer's companies; or Palmer has an interest in Evolve. Hermans said neither suggestion is true.

“He has no interest in my company. I am the 100 per cent sole director and proprietor of Evolve.

“The way I heard about Poolrite was that one of my best mates owns a Magnapool store. Initially I wanted to help make sure his livelihood wasn’t affected. Then we realised there were synergies with our factory methods and distribution methods and we took it from there.

“I’ve fielded hundreds of calls and questions – I put my phone number up and on Friday I thought that was a mistake because I got so many calls. But everyone I’ve spoken with, I feel, has been very comfortable with what we’ve done.”

Twelve Poolrite staff have been offered employment

“We’ve already started employing people – and we’ve only been in there for four days [at the time of the interview]. As we’ve got a better picture of where we’re at, we’ve started getting people involved. Sitting up on our website and Facebook page we’ve asked any ex-staff to give us a call and give us their contact details.

“Some people in Brisbane did give us their details – a lot of people have been calling us. We want to get in contact with them as well, but it’s hard because numbers and emails have changed.

“We’ve given out an email address: info.aus@evolvegrp.com. Any interested Poolrite staff should send their details to that address.

“So far we’ve reached out to about 12 people – by that I mean we’ve put offers in front of them.”

Hermans says that in the medium term, over the next few months, they might need to employ as many as 20 ex-Poolrite staff.

“An important thing to note is that a lot of the Poolrite staff have been re-employed – some by our manufacturing partners and suppliers such as the moulding guys, but not by Evolve ourselves. We won’t do all the manufacturing ourselves, but we’ll use third party guys for some aspects: transport and packaging and the like. We’ve been actively involved in trying to get the good guys employed. One of the guys from Townsville has already been picked up by a builder.

“We are getting production geared up. The head office is in Clontarf but the factory in Cressmead is where the bulk of it will be done, although we’ll have to go out to some other moulders as well.

“We’ve had great support from the customers and suppliers. But a lot of guys say they’ve been burnt in the past. All I can say it that when I say I’ll do something, I do it. And I can show you that – you’ll soon see we do what say.

“I’ve got money in the bank and I pay my bills.

“The thing that resonates most is that this is a business going forward, and the fear was that it will be broken up. The fact is we’re operating it and the customers with specific Poolrite stock will still be able to realise the value of the stock on hand.”

SV Partners will update Poolrite Australia Pty Ltd creditors on Tuesday October 23.