Significant Retail Closures in Australia in 2018

Many chain stores have succumbed to Australia’s tough retail climate which has been evident through the many companies who shut down for good in 2018. The changing landscape of bricks and mortar retailers in Australia has caused a string of significant closures, some of which we have listed below.

ESPRIT:

Fashion retailer Esprit revealed in early May last year that it would close all 67 of its stores in Australian and New Zealand. This decision followed the reports of losses reported in the Oceania region, and announce that they would shift their focus back to Asia, where they were reportedly more profitable.

DOUGHNUT TIME:

Doughnut Time received a lot of backlash when it was disclosed that their employees had been left unpaid for months, and then fired without explanation. A photo of a handwritten sign on the wall of the Doughnut Time store in at Sydney’s QVB went viral on social media, displaying the workers’ frustrations. The company’s financial struggles were further exemplified through the hashtag #itsnotalwaysagoodtime.

ZUMBO PATISSERIE:

Adriano Zumbo’s patisserie company went into voluntary administration in early August last year. It was reported that their debts were as high as $10 million.

TOYS R US:

After going into voluntary administration in May, the toy company finally closed down for good in August. All Toys R Us and Babies R Us stores closed across the country, and around 700 jobs were lost.

ROGER DAVID:

Roger David was placed in voluntary administration in October 2018. The famous menswear label confirmed that it would close all 57 stores throughout Australia.

This list of companies who closed in Australia’s tough retail climate exemplifies the landscape of bricks and mortar retailers. If you would like more information on company liquidations, or are considering one yourself, then please contact Australian Company Liquidations. We are registered company liquidators who offer a FREE 24/7 insolvency hotline for Australian directors seeking expert advice. Please call us on 1800 731155 now.

What is a Statutory report?

A creditors report is a statutory report which must be prepared and issued to creditors within 3 months of the liquidation of a company. The creditors report will contain both financial and non-financial information.
The purpose of this report is to provide creditors with:

 

  • Details of the estimated assets and liabilities of the Company;
  • Details of the inquiries the liquidator has made relating to the winding up of the Company to date;
  • Details of further inquiries the liquidator intends to make relating to the winding up of the Company that may need to be undertaken;
  • Details of what happened to the business of the Company;
  • An update on the progress of the liquidation;
  • Details on the likelihood of creditors receiving a dividend before the affairs of the Company are fully wound up; and
  • Details on the possible recovery actions.

 

A copy of the report must be lodged with ASIC. You can obtain a copy by paying a relevant fee and searching the ASIC registers or if you are a creditor the liquidator will provide it free of charge.

Other reports

The liquidator must also prepare and submit a confidential report with ASIC but this report will not be released to creditors.

Requests for information

Creditors can also request for information to be provided from time to time as along as the requests for information are reasonable requests. The liquidator must provide the information within 5 business days.

If you, as a director of an insolvent company, have decided to initiate a voluntary wind up of your company, you have the option of selecting a liquidator of your own choosing. To better understand of the liquidation process, call Australian Company Liquidations today on 1800 731 155 and we will start your liquidation within 24 hours.

How ACL’s Simple Company Liquidation Process Can Help You

At Australian Company Liquidations, all we do is company liquidations. As such, we have a simple liquidation process to make it easier for us to help you. We have a highly skilled team with years of experience in corporate insolvency cases. We constantly refine our work practices to achieve significant cost savings which we pass onto you!

VIEW OUR SIMPLE THREE STEP COMPANY LIQUIDATION PROCESS:

  • Contact us with your ACN details with a list of assets and creditors;
  • We will then email you with appointment documents to be signed by your company’s director/s and shareholder/s; and
  • We will then place your company into liquidation within 24 hours and notify your creditors on your behalf!

If your business has assets which can be sold by the liquidator to fund the cost of the liquidation we will not charge you any up-front fee.

If your business has no assets to pay for the cost of this simple liquidation, we can offer a low cost payment which will be a contribution towards the costs and expenses of the liquidation. This contribution is fixed so if we incur more fees during the course of the liquidation you will not be responsible to pay them.

Call us now on 1800 731 155 to discuss your situation so we can tailor a suitable package to meet your needs. You can even make the first enquiry on a confidential basis. We are happy if you want to remain anonymous until you feel comfortable to proceed with this simple company liquidation.