After 83 years in operation, Radio Rentals has announced that it is permanently closing its 62 stores and some of its warehouses. However, it plans to expand its online operations.
This will see 300 casual and full-time staff made redundant.
“I am disappointed that we have been forced to make hard decisions regarding our staff and store network, however they have had to be made to ensure Thorn Group continues to operate and thrive in the future,” Thorn Group CEO Peter Lirantzis said.
All 62 of Radio Rentals’ stores have been closed since the 3rd April as a result of the government’s COVID-19 containment measures, though its online store has continued to operate over this period.
In a statement released on the ASX today, Radio Rentals’ parent company Thorn Group stated that “amid the coronavirus-driven downturn in the retail sector” Radio Rentals would be taking a new direction “to develop a new, digital business model”.
The company has said they will try to better match its product range to the needs of its customer base.
“We intend to redevelop both Radio Rentals’ digital business model and Thorn Business Finance once the COVID-19 crisis has passed,” Lirantzis said.
At present, Radio Rentals leases out a wide range of technology devices, furniture, appliances, cleaning equipment, audio and visual tech, and heating and cooling appliances to consumer and business clients.
“The group presently has circa $40 million cash at bank and is actively pursuing a range of cost-cutting initiatives and recoveries, through which we expect to generate increased cash flow over the next year,” Lirantzis said.
Following the store closure announcement, the Thorn Group share price rose by 48.1% to $0.120 today.
