A Hoppers Crossing furniture shop will continue trading despite the collapse of its parent company, according to administrators appointed to run the business.
The Whitehorse Furniture and Bedding chain of five stores, with a reported turnover of $10 million a year, was placed into administration last week, but the level of its debt is unknown.
Twenty employees at five shops at Old Geelong Road, Hoppers Crossing, and Dandenong, Frankston, Moorabbin and Preston will keep their jobs in the short term, according to Stephen Dixon of administrators Grant Thornton.
“We are continuing to trade the business while we conduct an assessment of each of the stores,” Mr Dixon said.
But the long-term future of employees is uncertain.
“Investigations are continuing about which [stores] are loss-making and which are not,’’ Mr Dixon said.
‘‘The business is continuing to trade while we conduct this assessment.”
Calls to the Hoppers Crossing shop last Friday were not answered.
Mr Dixon said there were two reasons for the collapse of the Whitehorse chain.
“Firstly, sales have declined compared to previous years and, secondly, I think they expanded too quickly,” Mr Dixon said.
“[The owner] had three stores and went to five too quickly, in a short space of time.
‘‘This put constraints on the working capital of the business and led to the current situation.
“Investigations are continuing in relation to the quantum of the debts, and the reason for the collapse of the firm.”
Mr Dixon said the business might be sold as a going concern.
