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MELBOURNE - The worsening economy has claimed the scalp of car audio, home entertainment and mobile phone retailer Strathfield Group, which has been placed in voluntary administration.
Strathfield, which has around 100 outlets across Australia, said the move was forced by less-than-satisfactory Christmas and post-Christmas trading results and the worsening outlook for the retail sector for at least the first half of calendar 2009.
Strathfield said that given worsening economic conditions, consumer demand and generally falling asset values, it had reviewed its position.
"The board has resolved to take decisive steps to restructure the Strathfield Group," the company said.
Consequently, the Strathfield board had appointed voluntary administrators.
Strathfield said that subject to a report from the administrators, the company hoped to emerge from voluntary administration under a deed of company arrangement (DOCA) which may be put up by the company with the funding support of its largest shareholder.
The company said that it may shift toward a franchising business model.
Strathfield shares last traded at 0.6 cents.
Strathfield reported a net loss of A$7.6 million ($9.65 million) for the 2008 financial year.
- AAP
