Eighteen of Allphone’s company-owned branded stores were closed on Monday by the liquidators, PPB Advisory, with 69 employees losing their jobs.
The liquidators are reviewing options for the remaining stores which, for now, are continuing to trade.
The independent mobile phone retailer operates 84 stores and employs approximately 440 people across Australia. Of the stores, 25 are company-owned, seven are franchises, and the balance are licensed and operated on behalf of other parties.
But, PPB Advisory’s Phil Carter issued a statement on Monday saying that despite financial support from the shareholder and “significant efforts to deliver a successful turnaround”, the shareholders were unable to continue funding the group’s losses.
Carter says discussions are underway with interested parties who could take over operation of the rest of the store network, which is running on a “business-as-usual basis”.
“We are today undertaking an urgent review of Allphone’s business in order to stabilise the current operations and store network, and ensure that the employees impacted by the store closures today are fully supported.
“Our immediate priority is to work with Allphones’ staff, franchisees, licensees and other key stakeholders to allow the remaining store network to continue trading on a business as usual basis.”