- Thorn Group (TGA) has today announced that it will permanently close 62 of its Radio Rentals stores amid the COVID-19 retail downturn
- Closure of the household essentials and technology rental stores will leave 300 people out of work
- The Radio Rentals business will, however, continue to operate online and a new digital business model will be developed
- Thorn Group shares were one of the day’s biggest gainers and lifted 60.5 per cent to close at 13 cents per share
Thorn Group (TGA) has today announced that it will permanently close 62 Radio Rentals stores along with some of its warehouses.
Closure of the household essentials and technology rental stores is the latest in a cascade of retail closure due to the COVID-19 pandemic.
Consequently, approximately 300 stuff, both full-time and casual, will be made redundant over the next three months.
Thorn Group CEO Peter Lirantzis expressed his regret of the closures.
“I am disappointed that we have been forced to make hard decisions regarding our staff and store network, however, they have had to be made to ensure Thorn Group continues to operate and thrive in the future,” he said.
However, it is not the end of Radio Rentals. The core of the business will continue to operate online and a new digital business model will be developed.
Another of Thorn Group’s core businesses, Thorn Business Finance, has also been impacted by the trying business conditions and will also be re-shaped.
“We intend to re-develop both the Radio Rentals’ digital business model and Thorn Business Finance once the COVID-19 crisis has passed,” said Mr Lirantzis.
“The group presently has circa $40 million cash at bank and is actively pursuing a range of cost-cutting initiatives and recoveries, through which we expect to generate increased cash flow over the next year,” he added.
Some of those cost-cutting measures include the introduction of new credit policies and collection processes as well as a cut to head office costs.
Thorn Group shares were one of the day’s biggest gainers and lifted 60.5 per cent. Shares closed at 13 cents each.