Strathfield, retailer for mobile phones, home entertainment and car audio parts, has been placed by voluntary administration by the company’s board after saying that the worsening economic conditions, consumer demand, and falling values in its assets led it to make this decision.
“After due consideration of the company’s recent performance … and the continued negative and worsening retail outlook for at least the first half of the 2009 calendar year, and in particular the significant deterioration of the company’s working capital position and funding requirements going forward that have emerged following poor Christmas trading figures, the board has resolved to take decisive steps to restructure the Strathfield Group,” Strathfield said.
The company many also look to sell off its company-owned stores to franchisees, and may also axe jobs – but said that if any plans of job cuts were to happen, they will receive full entitlements.
The shares, placed on a trading halt on January 23, will remain suspended on their last traded value of 0.6 cents. They have appointed Brian Silvia and Andrew Cummins from BRI Ferrier as administrators.