By Claire Reilly
SYDNEY, NSW: Doors are set to close on two Retravision stores in Townsville and Ayr today, following the announcement that the stores have been placed into administration. The John Bradley Retravision shopfronts in Townsville and Ayr are wholly owned by businessman John Bradley, who is also a member of the Retravision group.
Phillip Scarff, managing director of Retravision Northern Limited, told Current.com.au that the stores were carrying “unsustainable levels of debt,” which was a problem given the current retail climate.
“The combination of the electronics sector and retail generally being pretty tough at the moment has probably impacted on this business a little more than other businesses. The sale of goods to builders and commercial business in general is being affected by the decline in housing starts, so that’s also had an impact.”
“There’s a more general trend that consumers are saving more and they’re reluctant to spend a lot because of the uncertainties around interest rates and the carbon tax and those types of things. That’s playing heavily on consumers’ minds at the moment.”
Click here to sign up for our FREE daily newsletter
Scarff reiterated that despite the store closures, Retravision will look after the effected staff members and “customers won’t be left out of pocket or disadvantaged because of this process.”
“We understand that this is devastating for staff and we will make every effort to work with them to help transition them into new employment,” he said.
“There is about 13 full time staff combined at both stores and a number of part time staff who will also be affected. Senior members of the Retravision Northern team will be at the stores today to talk with employees and customers.”
“We will personally contact all customers that have layby’s, deposits on goods and paid-for goods that are being held, to ensure they are not disadvantaged or left out of pocket.”
Whilst retailers may take the announcement as a grim portent of a retailer sector in continuing decline, Scarff said that Retravision would remain strong despite today’s disappointing news.
“In terms of our businesses in Queensland we’re quite comfortable,” said Scarff. “The majority of our operators are long-term operators and they’re weathering through the storm.
“The reality is that consumer spend is going to remain tight, and it’s about making sure that you’re managing all of the lines in your business effectively during a tough period. We have many businesses that are continuing to trade profitably, and we need to really make sure that during the difficult times that we’re managing the business effectively.”
Scarff added that consumers could be assured of the following:
– Manufacturers warranties will remain in place for all goods sold by John Bradley and extended warranties sold will also be honoured.
– The Retravision $500 Resort Vouchers that have been issued to John Bradley’s customers will all be honoured under the normal terms and conditions.
– Retravision Gift cards purchased at the John Bradley stores are still valid at all Retravision stores.
– Negotiations were underway to reopen the Ayr store with a potential new owner, but the discussions were preliminary at this stage.