Harvey Norman Holdings Chairman and local billionaire, Gerry Harvey, has reportedly bought Sydney-based discount electronics retailer, 2nds World, after it fell into administration last month.
In an exclusive by The Australian, Mr Harvey will use the acquisition to establish a Harvey Norman branded seconds retail business – five newly acquired stores transformed into ‘Harvey Norman 2nds World.’
ChannelNews understands Harvey is also planning to expand the brand interstate, with 2nds World stores in VIC, SA and QLD.
The outlets will range factory seconds, refurbished appliances and carton damaged goods encompassing TVs, whitegoods and more.
Whilst a purchase price has not been disclosed, Harvey will reportedly take over the retail store leases.
As previously flagged by ChannelNews, 2nds World has been suffering for some time, with a major contributor said to be a lack of parking near their Cremorne store.
Fierce online competition from the likes of Catch of the Day and Kogan.com are also attributed for the retailer’s collapse.
Whilst revenues have not been disclosed ChannelNews was made aware of several suppliers who had stopped credit to the retailer.
2nds World operates five retail outlets in New South Wales (Auburn, Caringbah, Castle Hill, Cremorne and Penrith) plus an online store. Customers include traditional consumers and commercial clients.
