Mobile phone retail chain Allphones went into voluntary administration today.
Allphones, which opened its first shopfront in South Australia in 1989, is the largest independent telecommunications retailer in Australia with 80 company-owned, licensed and franchised stores and 440 staff.
As a first step, 18 company-owned Allphones branded stores will be closed today due to insufficient funding, putting 69 people out of a job.
Phil Carter, Daniel Walley and Mark Robinson of PPB Advisory have been appointed voluntary administrators of the nine Australian companies which make up the Allphones Group.
Talks have started with interested parties who could take over the operation of the rest of the store network, which is running on a business-as-usual basis.
“We are today undertaking an urgent review of Allphone’s business in order to stabilise the current operations and store network, and ensure that the employees impacted by the store closures today are fully supported,” says Phil Carter of PPB Advisory.
“Our immediate priority is to work with Allphones’ staff, franchisees, licensees and other key stakeholders to allow the remaining store network to continue trading on a business as usual basis.”
The Allphones group was acquired in May 2016 by a Canadian shareholder with the ambition to undertake a turnaround of the business.
However, the shareholders were unable to continue funding the group’s losses.
Last year the company gave up its naming rights for Allphones Arena, Australia’s largest indoor venue, at Sydney’s Olympic Park. It is now called Qudos Bank Arena.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.