The administrators of the Allphones Group have revealed that 34 of the group's stores have been closed, while 50 will continue to trade during the administration process.
The mobile phone retail group went into voluntary administration on 6 February, with ARN reporting that at least 18 of its stores around the country will close up shop as a result of “insufficient funding”.
ARN also reported at the time that the move was expected to result in more than 60 redundancies.
Phil Carter, Daniel Walley, and Mark Robinson of PPB Advisory were appointed, on February 6, as voluntary administrators of the nine Australian businesses comprising the Allphones Group.
The mobile phone retailer operated 84 stores, with about 440 employees across the country. Of these stores, 25 were company owned, seven were franchises, and the rest were licensed and operated on behalf of other parties.
But following a meeting of creditors in Sydney on 5 April, it was revealed that of the 84 stores initially operated by Allphones, 50 are continuing to trade, following a transition to new operators, resulting in about two-thirds of the staff employed by Allphones securing ongoing employment with these new operators.
In addition, the administrators worked with Allphones’ major shareholder, Skidmore Retail Group, to settle on funding across the six Deeds of Company Arrangement (DOCAs), which has amounted to $2.2 million.
This was in addition to the funding of $0.9 million provided by Skidmore during the administration, which let most of the stores continue trading during the administration period and contributed towards creditor payments.
This followed the initial investigation and a call by the administrators to extend the convening period for the Allphones Group. Skidmore subsequently injected some cash and a proposal for six deeds of company arrangements (DOCAs) for all but one of the companies in administration.
The creditors voted in favour of the six deeds, with the agreements covering eight of the nine companies in voluntary administration (as the ninth has no creditors).
PPB Advisory administrator, Philip Carter, said the approval of the DOCAs is a result of all parties collaborating to achieve the best outcome for creditors, including store operators and employees.
“This was made possible through the support of the major shareholder, Skidmore, with funding used to transition many stores to new operators, and preserve the majority of jobs in the process.
“The agreement reached also ensures a better outcome for all creditors, and we are particularly pleased that we will now be able to pay out all employee entitlements in full,” Carter said.