Retail Adventures was finally placed in administration over the weekend, but the company will live on through a new entity by shedding unprofitable stores and operating under a licence from administrators.
The developments follow weeks of rumours about store closures and entrepreneur Jan Cameron’s supposed plans to save the company.
Cameron was not successful. Just three years after buying the company for $85 million after an initial collapse, it was placed in the hands of Deloitte restructuring services over the weekend.
Last week, administrator Vaughan Strawbridge from Deloitte said a licence agreement is now in place between Retail Adventures and Discount Superstores Group to manage the Crazy Clark’s and Sam’s Warehouse stores.
Deloitte was contacted this morning regarding the restructure, but none of the administrators were available before publication to expand on their statement.
“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,” he said, adding this was necessary because Retail Adventures could not be restructured.
“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.”
However, these stores are trading at “significant losses”, Deloitte said.
There are plenty of questions left unanswered, such as what happens to the current creditors, and the structure in which Discount Superstores will be “licenced” from Deloitte.
What’s clear is that hundreds of jobs are likely to go.
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