A third of Clive Peeters stores running at a loss: report

By Paul Hayes

MELBOURNE, VIC: With its business on the market and six stores set to close for the final time this afternoon, Clive Peeters may have suddenly become far less attractive to potential buyers.

According to Fairfax newspapers, up to one third of Clive Peeters’ 45 national stores are unprofitable at a store level, with some regional locations having never entered the black.

The prospect of such unprofitability has raised questions over whether any sale of the collapsed retailer would be of individual stores or of the business as a whole and if it would mean a reduced market presence if it is rescued.

Fairfax has named Harvey Norman, Bing Lee, JB Hi-Fi and The Good Guys as potential suitors for Clive Peeters, with Harvey Norman the most likely.

Receiver Phil Carter, of insolvency specialist in charge of Clive Peeters, PPB, said last Friday that there had already been strong interest in the sale and submissions of non-binding offers would be required by this Friday 18 June.

Today’s closure of the six stores in Queensland, Victoria and Western Australia will result in the loss of 75 jobs.

Current.com.au has attempted to contact PPB’s Phil Cater for comments on Clive Peeters and will publish any as they come to hand.
 

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