Clive Peeters' receiver, Phil Carter of PPB, has announced that six out of the chain's 44 shops will close on Tuesday, as part of a number of steps being taken to prepare the business for sale.
Townsville and Ipswich shops will close in Queensland while a further two shops will shut in Victoria's Mildura and Warrnambool. In Western Australia, shops in Bunbury and Canning Vale will shut.
"The receivers, with the assistance of key management, conducted a review of individual store performance and identified these stores as unsustainable," Carter said, adding that as a result 75 jobs will be lost.
"It is disappointing that these closures will result in job losses up to 75 out of a total of 1200 staff but we have minimised the impact of this by redeploying employees into other stores as far as possible," said Carter.
Carter also said that receivers will honour all remaining gift certificates at face value up to 30 June 2010. "Whilst we have no legal obligation to do so, we have agreed to honour gift certificates as a thank you to our loyal customers."
The Commerce Department of WA had recently told CRN that there was an issue with gift vouchers only being partially honoured. For example, those with a $100 voucher have to spend $400 in the store to redeem it.
Carter and PPB partner Daniel Bryant were appointed receivers and managers of Clive Peeters on 19 May. The receivers and managers continue to trade on behalf of the group.
Meanwhile, Carter also announced that the receivers have confirmed supply arrangements with over 20 of the major suppliers, including two of Clive Peeters' largest suppliers, Panasonic and Electrolux.
"We have experienced strong interest in the sale process and have requested submissions of non-binding offers by next 18 June. We then propose to deal with shortlisted parties only," said Carter.
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