RADIO Rentals is permanently closing its stores across Australia, with three hundred staff set to lose their jobs.
The move comes as a result of the coronavirus pandemic crippling the retail sector.
Radio Rentals to extend online presence
Radio Rentals lends home appliances, furniture and electronics in addition to running a separate finance business.
This morning, parent company Thorn Group revealed the bad news to the stock market.
As a result, 62 stores and some warehouses will close, in addition to 300 casual and full-time staff being made redundant.
Chief executive Peter Lirantzis says the company will revamp Radio Rentals’ online presence:
“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.
“We intend to re-develop both the Radio Rentals’ digital business model and Thorn Business Finance once the COVID-19 crisis has passed.”
Lirantzis said the group has about $40 million cash in the bank, but still needs to pursue a range of cost-cutting measures to increase cash flow over the next year.
Retailers struggling to stay afloat
Radio Rentals shut up shop on 2 April, along with hundreds of other retailers.
Outdoor adventure retailer Kathmandu announced it is also closing its doors permanently as a result of COVID-19.
In contrast, major retailers including Myer are planning to re-open as soon as possible.
Myer recently announced it is rehiring 2000 staff to manage a major surge in online sales.
Industry experts expect other retailers will use the pandemic as an excuse to permanently close unprofitable stores.