Specialty retailer, Strathfield Group (ASX: SRA), has gone into voluntary administration, blaming its demise on weak Christmas sales, a significant decline in working capital and a poor retail outlook for 2009.
The move comes after a request for a trading halt on the ASX on January 23.
In a statement to the ASX, the Strathfield Board said they had appointed Brian Silvia and Andrew Cummins of BRI Ferrier as voluntary administrators.
Soon-to-be-announced results for the first half of the financial year are expected to show a negative net assets and shareholders funds position at December 31, the statement read.
The announcement follows on the back of moves by NEC to exit the Australian retail market in early January.
The company hopes to recover from voluntary administration with a Deed of Company Arrangement (DOCA) and claims to have the collective support of its largest shareholder, secured financier, and largest trading partner for restructuring plans that aim to migrate the company to a franchise business model across the country.