Electronics retailer Retravision Southern in voluntary administration after retail downturn
22 May 2012
Australian electrical goods franchisor Retravision Southern yesterday became the latest consumer electronics retailer to collapse, only three days after asking store owners to extend funds to pay suppliers.
The company, functions as the central buyer and brand manager for 104 independently owned Retravision franchise stores in Victoria, southern NSW and Tasmania, and had called on store owners last week for an emergency cash infusion after admitting to difficulty paying its bills.
The plea however, proved unsuccessful and Bryan Webster and Leanne Chesser of corporate advisory firm KordaMentha were appointed as voluntary administrators of the company today.
The company, under joint-ownership of franchise operators, employs about 35 people at its head office in Melbourne's suburban Blackburn.
The collapse comes after the February demise of WOW Audio Visual Superstores costing 500 jobs and retail giant Woolworths was closing dozens of stores across its Dick Smith Electronics chain and furniture and electrical chain. Meanwhile, Harvey Norman has reported a 44 per cent plunge in earnings for the first half of the financial year.
According to Webster, the company's ability to operate as a going concern had been hurt by the industry-wide fall in consumer discretionary spending, that left retail sales of electrical and electronic goods at four-year lows.
