ONE of Tamworth's most popular shops is facing an uncertain future after its parent company announced it would enter voluntary administration this week.
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Major clothing retailer Jeanswest announced the decision on Thursday, saying administrators at KPMG would conduct an analysis of the business.
The company operates 146 stores across the country, including the region's only store in Tamworth Square.
Having first opened in Perth in 1972, the chain employs 988 people nationwide.
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KPMG's Peter Gothard said the shops would "continue to operate while the administrators conduct an urgent analysis of the business".
"The administrators will be looking at all options for the restructure or sale of this established Australian retail business, and are seeking urgent expressions of interest from parties interested in acquiring or investing in the business," Mr Gothard said.
KPMG's retail restructuring practice leader James Stewart said a number of factors had led to the company's decision to go into voluntary administration.
"Like many other retailers, the business has been challenged by current tough market conditions and pressure from online competition," Mr Stewart said.
"The administration provides an opportunity for Jeanswest to restructure, so as to better respond to the challenging Australian retail market."
Jeanswest's decision comes days after EB Games announced several of its stores would be closed down.
An EB Games spokesperson said Tamworth Shoppingworld's store would not close, but they did not confirm the future of the Armidale and Inverell stores.
"Like all businesses, we are constantly evaluating our property portfolio to ensure that our stores mix is in line with the ever-changing retail landscape," the spokesperson said.
"After careful consideration, we will be closing 19 unprofitable stores at the end of January."
They said customers and employees would be considered.
"Where possible, staff were offered the opportunity to work in surrounding stores," the spokesperson said.
"Customers can use their gift cards at any of the 300-plus EB Games and Zing Pop Culture locations around Australia and online."
Billy Jupp
Billy is a Senior Livestock Journalist for the Queensland Country Life based in Toowoomba. He has worked for a variety of different ACM mastheads during the past five years including the Namoi Valley Independent, Northern Daily Leader and The Land.
Billy is a Senior Livestock Journalist for the Queensland Country Life based in Toowoomba. He has worked for a variety of different ACM mastheads during the past five years including the Namoi Valley Independent, Northern Daily Leader and The Land.
