Jobs in doubt as major mobile phone franchise hits wall
NINE Queensland stores have been shut, and 32 staff made redundant as phone retailer Allphones goes into administration.
The future of the remaining local stores remains in limbo. There are more than 80 stores nationwide.
Allphones, which is Australia's largest independent phone retailer, is understood to have briefed staff on the news this morning.
In a statement to News Corp, PPB Advisory confirmed it had been appointed voluntary administrator of Allphones.
"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," PPB Advisory said in its statement.
"The Board of each entity (there are nine in total) has been left with no option other than to place each entity in the Allphones Group into Voluntary Administration this morning."
PPB Advisory confirmed 18 company-owned Allphones branded stores will be closed today due to insufficient funding to keep the stores trading during a sales process.
The ABC reported the write-off came a year after Optus, which also owns the Virgin Mobile brand in Australia, withdrew Optus and Virgin products from Allphones stores.
hil Carter of PPB Advisory said: "We are today undertaking an urgent review of Allphones' 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."