Discount chains may close doors due to voluntary admin
MORE than 30 regional discount retailers, including Crazy Clarks and Sam's Warehouse, could be at risk after the retail chain's owner moved into voluntary administration.
Deloitte Restructuring Services announced it was handling the administration of Retail Adventures, which operates the Crazy Clark's, Sam's Warehouse, Go-Lo and Chickenfeed franchises.
The administrator has put the company and its 238 stores around the country under a licence agreement with DSG Holdings Australia, which will manage the Crazy Clark's and Sam's Warehouse stores.
Deloitte partner Vaughan Strawbridge said the licence arrangement would allow the stores to keep operating and continue paying the 5000 employees working for the company.
The agreement comes after Retail Adventures attempted a restructure, which was not possible due to cost and time pressures.
"We will immediately begin a detailed review of the financial position of the company and, as part of this, will review the performance of the 32 remaining Crazy Clark's, Go-Lo and Chickenfeed stores," Mr Strawbridge said.
"These stores are trading at significant losses and closures are inevitable.
"Employees are being advised of developments and will be offered support as needed.
"We will also be contacting creditors and other stakeholders regarding the situation."
However, Deloitte would not comment on either the location or the status of the 32 stores which were operating at a loss.
A first creditors' meeting will be held next Wednesday November 7.