Embattled retail chain fights on
- 24 May, 2006 09:22
The Disc Shop has closed another two stores and extended its purchase offer period in an attempt to ensure the business is sold.
The Queensland IT retail chain was put into voluntary administration on April 11 after being unable to pay about $2 million in debt. At the time, the company maintained nine stores in Queensland and NSW.
Grant Thornton Chartered Accountants administrator, Michael McCann, said the latest decision brought the number of locations down to five. The remainder had been closed to increase revenue performance across the chain.
Strong supplier support had enabled it to continue to trade effectively, he claimed.
The next decision would concern the long-term future of The Disc Shop.
McCann said participants at a second creditors' meeting earlier this month had voted in favour of administrators continuing to operate the business while a buyer was sought.
This also allowed owner/director, Alan Green, more time to put together a proposal for a deed of company arrangement, he said. McCann was fairly confident the business could be sold and continue on.
"We're still in discussions with management about the restructure of the business," he said. "There's more work to be done."
Purchase offers for The Disc Shop will be accepted until May 31.