Sam's Warehouse staff avoid cuts for now

Some Sam's Warehouse outlets did not lose staff in this round.
Some Sam's Warehouse outlets did not lose staff in this round.

Sam's Warehouse stores in Wollongong and Shellharbour have escaped the latest round of closures announced by receivers KordaMentha Restructuring.

Parent company Discount Super Group (DSG), which also owns Crazy Clarks, collapsed at the start of July.

More than 1000 employees have since been left without a job, with KordaMentha closing 66 unprofitable stores across the country.

The latest closures were announced on Friday, with 26 stores to shut their doors by July 27.

While the jobs of more than 25 staff at the Wollongong and Shellharbour stores have been saved for now, seven employees at Crazy Clarks Warilla found themselves out of work when their store was closed last Sunday.

Thursday marked the end of the expression of interest period for buyers interested in the shops and leases. A spokesman for KordaMentha said more than 55 expressions had been received.

All Sam's Warehouse and Crazy Clarks stores are holding closing-down sales while receivers assess the situation. The spokesman said the remaining shops would stay open until another decision was made, they ran out of stock or were purchased by new owners.

He said the sales would help the receivers raise money to pay employee entitlements, which total about $10 million.

DSG was placed in voluntary administration by owner Jan Cameron, best known as the founder of retailer Kathmandu. It is the second time in two years the brands have been handed to receivers.


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