Radio Rentals permanently closes, hundreds out of work
RADIO Rentals stores across Australia will close permanently, putting hundreds of staff out of work as the COVID-19 pandemic cripples the retail sector.
Radio Rentals' parent company Thorn Group told the stock market this morning the company would permanently close all its stores and warehouses and instead expand its online presence.
Eighteen Queensland stores will be among those shuttered.
About 300 casual and full-time staff across the company, which offers a home appliance, furniture and electronics rental service, will be made redundant.
Thorn Group chief executive Peter Lirantzis said the company would revamp Radio Rentals' online presence once the COVID-10 pandemic passes.
"I am disappointed that we have been forced to make hard decisions regarding our staff and store network, however that have had to be made to ensure Thorn Group continues to operate and thrive in the future," he said.
Mr Lirantzis said the group had about $40 million cash in the bank and was pursuing a range of cost-cutting measures to increase cash flow over the next year.
The company said the COVID-19 crisis was causing an increase in arrears in both Radio Rentals and Thorn Business Finance, which will result on corresponding write-offs.
Mr Lirantzis expected the crisis would continue to create continuing challenging conditions for the next few months.