The receiver for the company behind retail ventures Crazy Clark’s and Sam’s Warehouse has announced the closure of 29 stores today, after the business recently collapsed into receivership for the third time in five years.
Most of the stores in the Retail Adventures discount chain will close by July 20, with around half of them based in Queensland. More than 300 employees are expected to lose their jobs.
According to a spokesperson for KordaMentha, the receivers who were appointed to take control of DSG Holdings earlier this month, all stores will have “massive” sales over the next nine days to clear stock.
“Local communities are urged to go out and get a bargain and help us raise money to pay the staff entitlements,” the spokesperson told SmartCompany.
The move will bring the total number of store closures to 39 since DSG Holdings owner and former BRW Rich Lister Jan Cameron called in voluntary administrators Nicols + Brien on June 30. David Winterbottom and Rahul Goyal of KordaMentha were appointed receivers on July 1.
Of the 29 stores included in today’s announcement, 14 are in Queensland, seven in NSW, five in Victoria and three in WA and South Australia.
In an interview with Fairfax earlier this week, Jan Cameron said she felt as though she had “failed”.
“I’m relieved that I can stop worrying and trying desperately to make the company work,” she said.
“I don’t feel bitter [but] disappointed for all the staff. Some of them are finding jobs but it will be very difficult for others.”
SmartCompany understands DSG Holdings owes around $20 million to trade creditors. However, this is a relatively minor component of the company’s debts. The business is also understood to owe another $10 million in staff entitlements.
At the time of entering receivership, Retail Adventures employed approximately 2500 people across 143 retail outlets.
Cameron founded outdoor adventure and clothing company Kathmandu in the 1980s. She purchased Retail Adventures out of receivership in 2009, only to buy it back in 2013, after the chain again collapsed into administration in 2012.