With 34 forced to shut up shop.
Mobile phone retailer Allphones entered into voluntary administration in February and 18 company-owned stores were closed, with administrators PPB Advisory saying there was not enough funding available to keep the stores trading while it attempted to sell the business.
Last week, it was confirmed that of the 84 stores initially operated by Allphones, 50 will continue to trade following a transition to new operators. This has resulted in approximately two-thirds of the staff employed by Allphones securing ongoing employment with these new operators. The remaining 34 stores have closed.
PPB Advisory firm has worked with Allphones’ major shareholder, Skidmore Retail Group, to agree funding across the Deeds of Company Arrangement (DOCA) totaling $2.2 million, in addition to funding $900,000 provided by Skidmore during the administration which enabled most stores to continue to trade, and helped increase realisations to contribute towards creditor payments.
This announcement follows a creditors meeting held in Sydney last week. The DOCAs enable full payment of entitlements to all 446 employees and full payment of net commissions to licensees and franchisees.
Philip Carter of PPB Advisory 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 today 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.”