Retail Adventures Pty Ltd: Administrators appointedDOWNLOAD
27 October 2012: Deloitte Restructuring Services Partners Vaughan Strawbridge, David Lombe and John Greig have been appointed Joint Voluntary Administrators of Retail Adventures Pty Limited, effective 26 October 2012.
Retail Adventures is Australia’s largest discount variety store operator and operates nationally under four brand names – Crazy Clark’s, Sam’s Warehouse, Go-Lo and Chickenfeed. The company operates around 270 stores across the four brands.
Mr Strawbridge said a licence agreement is in place between Retail Adventures Pty Ltd and DSG Holdings Australia Pty Ltd for them to manage the 238 Crazy Clark’s and Sam’s Warehouse stores.
“Retail Adventures has tried to restructure, but due to the cost of achieving this and time pressures, this has not been possible,” he said.
“The licence arrangement is designed to allow the Crazy Clark’s and Sam’s Warehouse stores to continue to trade under a new management structure.
“Around 5,000 people are employed in these stores and this is considered the best way to ensure their viability and to preserve the value of the business and jobs.
“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.
“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.
“Going forward, the focus will be on maintaining value in the business for the benefit of all creditors.”
A first creditors’ meeting will be held on Wednesday 7 November, where the Voluntary Administrators will provide further information to creditors.
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