Clive Peeters has been found to be unprofitable in one third of its stores, with six Clive Peeters stores closing their doors today at the request of receivers PPB.
Clive Peeters directors had been forced to call in administrator McGrath Nicol last month due to a mounting debt burden and collapsing sales.
Clive Peeters directors had hoped National Australia Bank would roll over long term debts totaling $38million and expand the company’s overdraft facility. However after sales collapsed for the 45 store chain in April, NAB called in receiver, Phil Carter of insolvency specialists PPB to wind up the company The Age reports.
Clive Peeters was hit heavily by a $20 million employee fraud last year and was believed to be on track to return to profitability, however the sales slide in April was too much for the company to endure.
Receiver Phil Carter of PPB up to 16 of Clive Peeters 44 stores were unprofitable, with 6 to be forced to shut their doors permanently at close of business today The Age reports.
Regional Clive Peeters stores were believed to have never been profitable, and make up the majority of the stores to be closed today. Bunbury Chamber of Commerce and Industry chief executive Andrew Horan told ABC Local thathe expects the seven staff working in the store to find suitable employment elsewhere in the city.
“Fortunately in Bunbury we have a large range of retail stores that provide those sorts of goods, so consumers hopefully won’t be missing out on competition,” Mr Horan told ABC Local.
A number of retailers competing over the remains of Clive Peeters include Bing Lee, Harvey Norman, JB Hi-Fi and The Good Guys the Australian Financial review reports.
