Buzzle, the Apple retail conglomerate that sank into receivership just weeks ago, has announced the closure of six "loss making" stores in between talks with a potential buyer for the group.
The closures were announced in a memo sent to Buzzle members, affecting outlets in Heidelberg and La Trobe in Melbourne, Chermside in Brisbane as well as McMahons Point, Burwood and Capital Square in Sydney.
In the memo, Thomas Qureshi, Buzzle CEO appealed to members to "appreciate that it was an extremely hard decision to bring about store closures and the decision was only made after some significant discussion between the management."
"In the end it was necessary to close some loss making stores to assist towards an attempt to put the business on a more commercial foundation," Qureshi said.
Sources indicate the closed stores that hadn't already been deserted by staff were in a state of stunned limbo, unsure of their status or the way forward. Even Buzzle's remaining profitable arms are nervous and unsettled about the way they've been "done over" he source said. Meanwhile, another inside source said many stores in the Buzzle group want to go it alone while others wish to remain in the fold.
In related news, Buzzle receiver KPMG is said to be meeting today [Wednesday] to consider a possible takeover bid for what remains of the group. The identity of the interested party is not yet known nor is whether it is interested in the business as a whole or just components of it.