No buyer has been found for the troubled discount retail chains Crazy Clark’s and Sam’s Warehouse, meaning 2500 staff are set to lose their jobs.
About 2500 workers look set to lose their jobs with all stores in the discount retail chains Crazy Clark’s and Sam’s Warehouse set to close.
Receivers of their collapsed parent company Discount Superstores Group had been looking for a buyer of profitable Crazy Clark’s and Sam’s Warehouse stores, while poorly performing stores have gradually been closed.
But no buyer has been found, and all 143 stores are set to close by the end of August.
“Unfortunately, there has been no buyer for the group or any sizeable part of the group,” KordaMentha’s Rahul Goyal said.
The next round of closures on August 17 will affect 19 stores and 300 employees, taking total store closures to 128.
The DSG distribution centre in Brisbane is also closing, resulting in 30 job losses.
That takes the total job losses so far to almost 1800.
The receivers expect to be able to pay out all staff entitlements by mid-September, as customers have responded well to massive discounting at the remaining stores.
DSG was placed in voluntary administration on July 1, the second time owner Jan Cameron has put the discount store brands into the hands of receivers in two years.
Ms 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.