By James Wells
BRISBANE: Betta Stores Limited (BSL) CEO Guy Houghton, has expressed devastation at the news that one of his Melbourne-based members, Hi Fi Supermarket, has gone into administration.
“I was devastated to hear the news of the potential and subsequent appointment of an administrator to the Hi Fi Supermarket business,” BSL CEO Guy Houghton told current.com.au.
“The directors and especially Peter have enormous respect within the industry and for such an event to take place was completely without notice," he said.
"Personally I am a friend of Peter and Sandra and can only begin to imagine the difficulties they are currently facing. I sincerely hope that they will recover from this challenge strong and in good health."
Hi Fi Supermarket executive director, Peter Caserta, unsuccessfully applied to become a director of the company in November last year.
Hi Fi Supermarket has been placed into the hands of administrators Korda Mentha, who have also been responsible for other collapsed businesses including Brashs and the Pay-TV shopping channel, TVSN.
Publicly-listed consumer electronics retailer, JB Hi-Fi, has taken over the leases to two stores located at Ringwood and Epping. The future of the Maribyrnong store is not known at this stage.
Hi-Fi Supermarket, which commenced trading in 2001, is estimated to have generated a turnover of $42 million in 2005. Caserta started Hi-Fi Supermarket after resigning from JB Hi-Fi as general manager in 2000.
Caserta had joined JB Hi-Fi back in March 1985 ,when the retailer had one store and turned over $6.5 million. At the time of his resignation, JB Hi-Fi had a turnover of $120 million.
KordaMentha is holding its second creditors meeting in Melbourne this morning.