Final sale nigh for discount store

Warrnambool's Sam's Warehouse closure will be one of 22 of the group’s stores to close this month, shutting the doors so far on 109 of 143 stores.

Warrnambool's Sam's Warehouse closure will be one of 22 of the group’s stores to close this month, shutting the doors so far on 109 of 143 stores.

SAM’S Warehouse will shut for the last time next Sunday, putting 19 people out of work.

The store is part of the Discount Superstores Group (DSG), which includes the Sam’s Warehouse and Crazy Clark’s stores in NSW, Queensland and Victoria, that was placed in receivership on July 1.

The Warrnambool closure will be one of 22 of the group’s stores to close this month, shutting the doors so far on 109 of 143 stores.

About 1400 people have so far lost their jobs in the closures.

Receivers KordaMentha Restructuring have attributed DSG’s closure to “softer consumer sales being felt throughout the retail industry”.

The job losses at the Warrnambool store include 15 casuals, one full-timer and one part-timer.

KordaMentha spokesman Michael Smith said it was selling stock up to 50 per cent discounted during the store’s final week of trading to raise cash to help pay the entitlements of all employees. 

It hoped to pay entitlements totalling $10 million to employees throughout Australia by the end of September, Mr Smith said.

He said it also hoped to sell shops, stock and fittings to interested buyers who expressed interest after an advertising campaign. 

But it was “extremely unlikely there will be a buyer for a large part of the group”, he said.

Sunday’s closure comes less than two years after the store faced closure in October 2012, when its then owner, Retail Adventures, was placed in voluntary administration.

Two weeks later, after landlords renegotiated with the administrators to secure a lease, the store was able to continue trading.

DSG’s collapse is a another setback for owner Jan Cameron, who was once named Australia’s fourth richest woman and in 2006 sold her half-stake in the Kathmandu chain of outdoor clothing and camping stores for $250 million.

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