Another 29 Crazy Clark’s and Sam’s Warehouse stores will close and more than 480 employees will loose their jobs following the collapse of parent company Discount Super Group.
The move takes the total number of stores closed to 39, with further closures to be announced next week.
Receivers KordaMentha are looking to close down unprofitable stores while finding buyers for the profitable ones as well as trying to find money to cover about $10 million in staff entitlements.
Around 100 of the 143 Crazy Clark’s and Sam’s Warehouse branded stores are believed to be profitable, though a KordaMentha spokesman said the situation was still being assessed and a closing down sale was being held until buyers could be found for some stores.
He said they had received around 50 expressions of interest from potential buyers, though no one has yet offered to buy the entire network.
“Most expressions of interest are for a single store or a group of stores – we don’t have anyone yet who wants to buy lock, stock and barrel but we have a week to go (until expressions of interest close,” he said.
Of the latest closures, 27 are run under the Crazy Clark’s brand and almost half are located in Queensland. A further nine are in NSW, three are in Victoria, two in South Australia and one in Western Australia.
The stores, expected to close by July 20, will sell off remaining stock over the next week or so.
DSG was placed in voluntary administration last week, the second time owner Jan Cameron has put the discount store brands into the hands of receivers in two years.
Cameron, best known as the founder of outdoor goods retailer Kathmandu, placed the two brands into administration in 2012 with $170 million in debt.
She later bought them back for just under $60 million, but has ruled out buying the chains back for a third time.
AAP
