ADMINISTRATORS APPOINTED: A review of the financial situation of a number of individual stores run by Retail Adventures, including Crazy Clark’s stores, is continuing. Photo: Barry Smith 301012BSA01
THE future of the region’s Sam’s Warehouse and Crazy Clark’s stores remains uncertain.
Another three of the Crazy Clark’s discount stores closed in Armidale, Glen Innes and Tenterfield on Tuesday.
A spokesman for administrators Deloitte told The Leader he wasn’t sure what would happen next.
The stores were owned by Retail Adventures – Australia’s largest discount variety store operator – and operated nationally under four brand names – Crazy Clark’s, Sam’s Warehouse, Go-Lo and Chickenfeed.
Deloitte Restructuring Services Partners Vaughan Strawbridge, David Lombe and John Greig were appointed joint voluntary administrators of Retail Adventures last Friday.
Mr Strawbridge said a licence agreement was in place between Retail Adventures and DSG Holdings Australia for Deloitte 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 5000 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.”
He said a detailed review of the financial position of the company, and a review of the 32 remaining Crazy Clark’s, Go-Lo and Chickenfeed stores’ performance, was under way.
“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,” Mr Strawbridge said.
He said the focus would be on maintaining value in the business for the benefit of all creditors.
