Thorn announces Radio Rentals store closures

Departure of managing director.

Thorn Group, parent company of Radio Rentals, has commenced a store rationalisation process following an ongoing review of performance and productivity of the Radio Rentals store network and lease maturity dates, as well as demand for consumer leasing shifting online.

In a statement to the ASX, Thorn Group said, “Three stores have been closed in recent weeks and a further five stores in total will be closed over the next 30 day period. These eight stores contribute $3.7 million (4.2%) of total sales revenue for the consumer leasing division per annum.

“There will be $1.1 million of one-off costs incurred in exiting these locations. The closures will reduce retail costs of doing business while retaining 61 stores nationwide plus online capability.

“Customers affected by store closures will be transferred to the nearest store to ensure continuity of sales and service management.”

Thorn Group CEO, Tim Luce will leave the company to pursue other interests, but will remain working with the board through the strategic review process and recruitment of a suitable replacement before his departure.

The company will provide a trading update to the market at its annual general meeting on 30 August. Currently, it has been indicated that the outlook continues to remain challenging with declining group revenue, fluctuating arrears and general market uncertainty.

Further, corporate costs continue to remain elevated due to legal costs in defending the ongoing class action and recent advisory costs associated with the strategic review.

The South Australian Radio Rentals brand is not associated in any way with Radio Rentals stores owned and operated by the Thorn Group in states other than South Australia. In South Australia, Thorn Group stores trade as Rentlo Reinvented.

Tags: ,

Leave a Reply

Your email address will not be published. Required fields are marked *