Troubled white-goods retailer Clive Peeters has been placed into administration, a victim of the downturn in the retail sector and a $20 million fraud by an employee last year.
This month Clive Peeters said its operating loss for the three months to March 31 was expected to be $4.5 million compared with a loss of $600,000 for the same period last year.
The company employs 1300 staff members in 44 stores across Australia.
Managing director Greg Smith said at the time subdued sales and margin pressures had damaged the trading outlook.
He said interest-rate rises and the threat of more to come had affected sales of big-ticket items such as fridges, TV sets and washing machines.
This morning shares in Clive Peeters were placed in a trading halt, with the company saying it was in talks with its financiers.
The shares’ most recent peak was at 70 cents on October 19, 2009. They fell from 22 cents on May 3, 2010, to 10.5 cents on May 7, before closing yesterday at 15 cents.
Colin Nicol, Keith Crawford and Matthew Caddy of McGrathNicol have been appointed voluntary administrators of the retailer and its various entities.
Last year a Clive Peeters employee was sacked for taking nearly $20 million from the company and using the funds to buy properties.
The administrators said they were conducting an urgent appraisal of the company's affairs to investigate the circumstances leading to their appointment and to determine whether the underlying business can be preserved.
''We are mindful that many shareholders will be affected by the appointment of voluntary administrators to Clive Peeters, including employees, suppliers and other creditors, customers, lessors and shareholders,'' said Mr Nicol.
''It is hoped that the business can be stabilised and can continue to trade in one form or another beyond this administration.''
egreenblat@theage.com.au
