Two discount retailers owned by Kathmandu founder Jan Cameron have fallen on tough financial times for the second time in less than two years.
The future is uncertain for 2,500 workers at discount retailers Crazy Clarks and Sam’s Warehouse after the businesses fell into financial trouble for a second time in under two years.
Discount Superstore Group (DSG), owned by Jan Cameron, the founder of outdoor clothing retailer Kathmandu, has been handed over to receivers and administrators.
DSG bought Crazy Clarks and Sam’s Warehouse out of administration for $59 million in February 2013, after another of Ms Cameron’s ventures, Retail Adventures Group, buckled under debts of more than $160 million in October 2012.
Several Crazy Clarks and Sam’s Warehouse stores have closed in the meantime, but a general decline in the retail sector, and falling demand for discount retailers, appeared to have caused the latest financial woes, receivers said.
All 143 Crazy Clarks and Sam’s Warehouse stores will continue to operate while receiver KordaMentha looks to consolidate their stock and exit unprofitable stores.
“We will be immediately exploring the going concern sale of the profitable Crazy Clarks and Sam’s Warehouse stores to interested parties,” KordaMentha’s Rahul Goyal said.
“All stores are currently in sale mode so there should be plenty of great value to be had for our customers whilst we work through that process.”
DSG’s 2,500 employees will be updated regularly updated on the sale process.