Mobile phone retailer Allphones has gone into voluntary administration, immediately axing 69 staff and closing 18 stores.
The national retailer, whose name was emblazoned on Sydney’s Super Dome stadium as ‘Allphones Arena’ for five years, operated 84 stores across Australia with 440 staff.
PPB Advisory has been appointed voluntary administrators.
The Allphones Group was aquired last May by a Canadian group who vowed to turn the business around. However, after less than 12 months, there will be no further money poured into the company.
"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," a statement from PPB Advisory read.
Twenty-five of the stores are company owned, seven are franchises, and the remainder are licenced and operated on behalf of others.
Allphones sells a variety of mobile phone brands which can be used on a choice of different network providers.
Discussions are underway with parties who may be interested in taking over the remainder of the stores.
In the meantime, it’s business as usual.
“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,” said administrator Phil Carter of PPB Advisory.
“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.”