More bad news for Chickenfeed

MORE Chickenfeed stores could close in coming weeks after the discount retailer's parent company Retail Adventures Proprietary Limited went into voluntary administration.

Retail Adventures is the country's largest trader of discount variety brands including Sam's Warehouse, Crazy Clark's, Chickenfeed and Go-Lo stores.

Chief operating officer Penny Moss said 29 of the discount variety brand stores had already closed in Tasmania, New South Wales and Victoria.

Ms Moss said 57 Chickenfeed and Go-Lo stores from around the country would be re-branded as Crazy Clark's stores.

The closure of the Chickenfeed distribution centre has been named as one of the challenges the business has faced over the past three years.

''The infrastructure and overheads of both the distribution centres and our head office are currently unsustainable. The restructure is necessary to preserve value for the creditors and make sure the business is financially viable in the future,'' Ms Moss said.

She said employees affected by store closures would be paid their entitlements in full and where possible offered alternate employment with continuing stores.

Outstanding gift vouchers across all brands will also be honoured by the continuing stores.

Vaughan Strawbridge and two of his partners of Deloitte have been appointed as voluntary administrators to facilitate a full restructure of the business.


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