Administration fears for Retravision
May 18, 2012


The fate of another retailer is under a cloud, with fears Retravision Southern may slide into administration.   

Retravision Southern, the buying and marketing company for 99 privately-owned Retravision stores in Victoria and Tasmania, reassured employees yesterday that they would be paid if the company fell into administration, according to a trade publication.

"I can confirm that this morning we did have a staff briefing and at that meeting it was noted that things were tough for the Retravision Southern region,” a spokesman for Retravision chairman Ian Ray told appliance retailing publication Current.com.au.   


“We are working through various 'work-out' solutions, and there have been some late payments with suppliers."

Retravision Southern is understood to be facing cash flow problems with difficulties paying suppliers. Retravision Southern operates as an independently-owned franchise of Retravision, servicing stores in Victoria and Tasmania.

Profits fell 8.1 per cent in 2011 to $357,000 on sales of $340 million. Australia's retailers have come under strain from price deflation resulting from the strong dollar in recent years. Also the ability for customers to compare prices online has altered the competitive playing field, putting pressure on traditional business models.

Retravision Northern and Western, operating separately, are unaffected by the problems at Retravision Southern. Retravision Western chief Paul Holt said the divisions continue to "trade strongly".

Problems for electronics chains have become common in recent months. In mid-2011 retailer Harvey Norman closed or rebranded 23 Clive Peeters, because of poor performance. In March, Queensland-based electronics retailer WOW closed 15 stores, putting 580 people out of work. Harvey Norman itself reported a 25 per cent drop in profit for the nine months to March.


Read more: http://www.theage.com.au/business/administration-fears-for-retravision-20120518-1yugj.html#ixzz1vBUNoyMI

Yes I know, its terrible.  Its off to bed with no supper for me.   

No not at all happy about retailers going broke.  The thing is though, how much of it is their own fault?.  Consumers do and will vote with their feet.  If prices are to high, they will go elsewhere, or buy on -line.