By Claire Reilly
Harvey Norman Holdings Limited has appointed an administrator for three of its failing subsidiaries, including one Clive Peeters store in Bendigo, Victoria, and two Rick Hart stores in Mandurah and O’Connor, Western Australia.
In a statement released to the Australian Securities Exchange late on Friday, Harvey Norman confirmed that it had appointed chartered accountant and registered liquidator David Levi, of Sydney’s Levi Consulting to act as the administrator.
The news follows an announcement in August that the company was disappointed with the performance of 25 Clive Peeters and Rick Hart stores that were acquired after the collapse of Clive Peeters Limited in 2010.
As a result, Harvey Norman CFO Chris Mentis confirmed that the company would rebrand 16 of the stores into Harvey Norman shopfronts and 2 into Joyce Mayne, with the remaining 4 Clive Peeters stores and 3 Rick Hart stores to be closed down.
Aside from the Bendigo, Mandurah and O’Connor stores, the remaining closures will occur in Dandenong, Thomastown and Malvern (Clive Peeters) and Osborne Park (Rick Hart).
Speaking in August about the closures, Mentis said, “The Clive Peeters and Rick Hart brand formats have not achieved the requirement for ongoing investment in the company.
“The closure of the four Clive Peeters and three Rick Hart stores will result in a charge against the pre-tax profit of the consolidated entity to an amount presently estimated to be approximately $10 million in respect of the financial year ending 30 June 2012,” he said.
Current.com.au contacted Harvey Norman, but the company has declined to comment.