Harvey Norman shuts Domayne Campbelltown in Sydney | The Daily Telegraph
Harvey Norman shuts Domayne Campbelltown in Sydney
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By Peter Gosnell
January 21, 2009 12:01am
RETAIL giant Harvey Norman is the first major retailer to succumb to the global credit crisis with the closure of its Domayne Campbelltown store, with the loss of 40 jobs.
And in a futher blow, the nation's largest discount retailer - Australian Discount Retail (ADR) has collaped with debts of almost $100 million, leaving 2700 full-time staff facing an uncertain future.
Yesterday's announcements are the first wave of job losses as retailers struggle with plummeting sales as the credit crunch deepens. Harvey Norman chairman Gerry Harvey warned of further closures as the credit crunch bites, with the future of as many as 10 stores in doubt by the end of the year.
Mr Harvey described the current financial crisis as the worst he had seen in 47 years of business.
"I've been doing exactly what Mr Rudd wants me to do and I can't keep doing it indefinitely . . . I've been listening to him and doing it but I can't keep doing it because crunch time is coming".
The collapse of ADR places a question mark over the future of hundreds of full-time jobs at 130 Crazy Clarks, Go Lo, Sams Warehouse stores across NSW.
The company is Australia's largest discount retailer and employs 2,700 staff in 402 stores national.
Only Chickenfeed, while a part of the ADR group with 28 stores in Tasmania, is not in administration or receivership.
ADR was placed in receivership yesterday with debts of $96 million owed to secured creditors NAB Capital, ANZ and HBOS