Retail chain Robins Kitchen collapses, Melbourne icon Dimmeys on the brink
December 23, 2013 Leave a comment
James Thomson Editor
Retail chain Robins Kitchen collapses, Melbourne icon Dimmeys on the brink
Published 18 December 2013 11:07, Updated 19 December 2013 07:47
Australia’s beleaguered retail sector has received an unwanted Christmas gift: the major Queensland retailer Robins Kitchen has been placed in administration and iconic Victorian chain Dimmeys is now facing the same fate.The privately owned Robins Kitchen has 55 stores – 36 in Queensland, 18 in NSW and one in the ACT – and employs 300 staff.
The business is now in the hands of John Park, Kelly Trenfield and Quentin Olde of FTI Consulting. Park said in a statement that the timing of the collapse was unfortunate, although all stores are expected to remain open until at least Christmas Eve.
“We acknowledge that the timing of voluntary administration so close to Christmas is going to create additional uncertainty for employees and customers, which is difficult and unfortunate for all,” said Mr Park.
“It is our intention to work with all parties in an effort to minimise this impact where possible,” he said.
The collapse could hurt some customers. As is usual in retail collapses, customers who have gift vouchers and laybys will become unsecured creditors.
Dimmeys fined $3m
According to The Australian Financial Review, Robins Kitchen has expanded rapidly in the past six years, jumping from 20 stores to 55, with 13 stores added in the past three years.
The situation at discounting department store Dimmeys is much different. On Tuesday it was hit with a $3 million fine by the Federal Court for breaching consumer safety laws, with the owner of the chain, Doug Zappelli, banned from managing corporations for six years and was fined $120,000.
According to The Age, the chain now plans to enter voluntary administration in and restructure the business via a deed of company arrangement. This may involve the sale of some assets from the 40-chain store.
“We propose to put the company into voluntary administration and have taken steps towards that,” Hampson told The Age on Tuesday. “We believe that will enable Dimmeys to continue to trade as a viable company and we are in talks with other parties about this.”
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