Retail Adventures’ administrators call for buyers, reveal $648 million earned during 2012
Friday, November 23, 2012/
The administrators of troubled discount group Retail Adventures have put out a call for expressions of interest for the business, revealing its revenue and offering to sell the company’s separate brands individually.
In the process, Deloitte has also revealed the company turned over $648 million during the 2012 financial year, and currently has 4,717 employees. Before this announcement, a specific revenue figure hadn’t been divulged.
Deloitte was contacted this morning, but declined to comment. A spokesman did point out that all remaining Go-Lo and Chickenfeed stores will be rebranded to Crazy Clark’s or Sam’s Warehouse. As a result, the Go-Lo and Chickenfeed brands are being sold independently.
“The business is currently undergoing a restructure and rebranding,” it said. “Consequently, the brands Go-Lo and Chickenfeed are also offered independently of the other assets of Retail Adventures.”
The company is cited as turning over $648 million during the past year across its store network.
The collapse of Retail Adventures has been an indictment on the weakness of the Australian retail industry.
More recently, it was revealed that creditors to the business are owed $96 million. Jan Cameron told creditors that ongoing operational costs made her put the company in administration, but that she wants to buy the business back.
This makes the call for expressions of interest all the more noteworthy.
The company has 1,700 unsecured trade creditors and 318 landlords. Currently the stores continue to trade under a licence agreement with administrators.
Insolvency experts recently told SmartCompany this type of licence agreement is only going to become more common, especially in the retail industry and among SMEs, as economic conditions put pressure on consumer-focused businesses.