Allphones confirms huge raft of store closures

AllPhonesMobile phone retailer, Allphones, has confirmed it will close 34 stores after a meeting by the chains creditors yesterday.

In a update from the phone chain’s administrators, PPB Advisory, 50 stores will continue to trade following a transition to new operators.

PPB worked with Allphones’ major shareholder, Skidmore Retail Group, to settle on funding across the six Deeds of Company Arrangement.

Allphones Group is comprised of 25 company-owned outlets, seven franchises and the balance licensed to other parties.

The agreements cover eight of the nine companies in voluntary administration with  the DOCAs totalling $2.2 million. This was in addition to funding of $0.9m provided by Skidmore during the administration which enabled most stores to continue to trade during the administration.The terms of the DOCAs enable full payment of entitlements to all 446 employees and full payment of net commissions to licensees and franchisees.

“The approval of the DOCAs is a result of all parties collaborating to achieve the best outcome for creditors, including store operators and employees,” said Phillip Carter of PPB.

“This was made possible through the support of the major shareholder, Skidmore, with funding used to transition many stores to new operators, and preserve the majority of jobs in the process.

“The agreement reached also ensures a better outcome for all creditors, and we are particularly pleased that we will now be able to pay out all employee entitlements in full.”

Two thirds of the current Allphones workforce have secured ongoing employment with the new operators.

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