PPB ADVISORY APPOINTED VOLUNTARY ADMINISTRATORS OF ALLPHONES GROUP
Allphones is an independent mobile phone retailer that operates 84 stores and employs approximately 440 people across Australia. Of the stores, 25 are company owned, seven are franchises, and the balance are licensed and operated on behalf of other parties.
The Allphones group was acquired in May 2016 by a Canadian shareholder with the ambition to undertake a turnaround of the business. Despite financial support from the shareholder and significant efforts to deliver a successful turnaround, the shareholders are unable to continue funding the group’s losses.
The Board of each entity has been left with no option other than to place each entity in the Allphones Group into Voluntary Administration this morning.
Based on an initial review by the Voluntary Administrators, 18 company-owned Allphones branded stores will be closed today due to insufficient funding to keep the stores trading during a sales process. As a result, 69 employees were made redundant today.
Discussions are underway with interested parties who could take over the operation of the remainder of the store network, which is running on a business-as-usual basis.
Phil Carter of PPB Advisory said: “We are today undertaking an urgent review of Allphone’s business in order to stabilise the current operations and store network, and ensure that the employees impacted by the store closures today are fully supported.”
“Our immediate priority is to work with Allphones’ staff, franchisees, licensees and other key stakeholders to allow the remaining store network to continue trading on a business as usual basis.”
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