The Warilla Crazy Clarks closed on Sunday, leaving seven staff without a job, after the collapse of parent company Discount Super Group.
A total of 39 Crazy Clarks and Sam’s Warehouse stores across the country will close and 500 employees will lose their jobs, with further closures to be announced this week.
Receivers KordaMentha Restructuring are looking to close unprofitable stores while finding buyers for the profitable ones, as well as trying to find money to cover about $10 million in staff entitlements.
The decision to shut the doors on the Warilla store, located in Warilla Grove shopping centre, was announced in the first round of closures.
A KordaMentha spokesman said two full-time, two part-time and three casual workers were affected.
No announcement has yet been made about the future of the Sam’s Warehouse stores at Shellharbour and Wollongong. There are more than 25 staff working at those two stores, most of them casuals. The next round of closures for the group will be made public on Thursday.
The spokesman said unprofitable stores had to be shut to service company debts and staff entitlements. Staff will be given 10 days notice before each store is closed.
‘‘There’s more than 500 staff affected by the 39 store closures so far, which is really unfortunate for them,’’ the spokesperson said. ‘‘One of our main jobs is to get enough money in to pay them their full entitlements.’’
Around 100 of the 143 Crazy Clarks and Sam’s Warehouse branded stores are believed to be profitable, though the situation was still being assessed. A closing down sale was being held until buyers could be found for some stores.
‘‘Our aim is to pay staff all of their entitlements by the end of September. So we need to sell a lot of stock, we need customers to go in and grab a bargain. There are massive discounts of up to 50 per cent,’’ the spokesperson said.
DSG was placed in voluntary administration last week, the second time owner Jan Cameron, best known as the founder of outdoor goods retailer Kathmandu, has put the discount store brands into the hands of receivers in two years. Ms Cameron has ruled out buying the chains back for a third time. Another buyer for the group has not been found, although there had been interest from buyers in the purchase of some individual stores.