EXCLUSIVE: Retravision WA has moved to cut support for their online operation in an effort to shore up support for what has been described as their “struggling bricks and mortar” stores.Senior Retravision WA staff has told ChannelNews that senior management at the WA buying group have “cut the heart” out of support services for their online operation and that more than six staff have been laid off or moved to other roles.
“We have been told that resources are being reallocated and that staff is being laid off because management believe that stores take priority over online” a senior executive said.
WA CEO Paul Holt did not return ChannelNews calls yesterday.
ChannelNews has been told that several Retravision stores are struggling, and that the group is “banking on a good run into the peak Xmas buying period” .
“The whole focus of the group is on stores–not online–and this could be a big mistake as a lot of people in WA live away from big cities and shopping online is convenient. The WA online business will be picked up by the likes of Harvey Norman and JB Hi Fi” the executive said.
ChannelNews understands that several credit controllers at major appliance and consumer electronic groups along with three leading insurance providers have the WA group on credit watch.
In May, the WA group moved to allow Retravision Southern members whose buying group was placed into administration with debts of over $31M to apply for migration to Retravision WA.
At the time CEO Paul Holt said in a letter to shareholders that he was only inviting up-to-date Southern members to apply.
“I’m pleased to advise that we have completed and sent the Dealer Migration Packs to all of the Retravision Southern dealers that had registered,” Holt wrote.
Administrators of Retravision Southern KordaMentha are today chasing vendors who removed stock from a Retravision warehouse on the day administrators took control of the Company.
ChannelNews has been told the administrators, KordaMentha, have spoken to the vendor who has been ordered to either return the stock or pay money to the value of the stock to the administrator.
A KordaMentha spokesperson said “We have requested the return of this stock or the proceeds from the sale of this stock as Retravision Southern has title over the goods”.
ChannelNews has been told the name of the Vendor.
