THE liquidator of Victorian company Warehouse Sales said it was “very unlikely the business would keep trading”.
The company’s four stores in Melbourne and regional stores in Bendigo, Ballarat, Warrnambool and Wodonga closed suddenly on Tuesday.
A sign on the door of the Mitchell Street business says 'Warehouse Sales Pty Ltd is closed due to liquidation'.
The Australian Securities and Investment Commission said the company was in 'external administration'.
KPMG partner and co-liquidator of Warehouse Sales, Damian Templeton, said the company had no choice but to close its doors.
“Given the position of the business, we can’t continue to trade," he said.
“We are doing an urgent assessment on the status of the business to work out where it’s at and what our options are.
“It seems at this stage it is very unlikely the business would return to trading."
The company employs about 70 people in Victoria.
It is currently unknown how many people are employed at the Bendigo store, but all look likely to lose their job.
Mr Templeton said he was unsure whether staff would receive their entitlements.
“If we find the business isn’t viable and we realise the assets, we’ll have to figure out what the most efficient way to deal with different claims. It’s too early to tell,” he said.
He said it was also too early to say what would happen with people who had laybys with the store.
He encouraged people in this situation to get in touch with KPMG.
“We are looking through it as a matter of urgency," he said. “We encourage people to get in contact and send in claims with their paperwork. We will work through it as quick as possible.”
Warehouse Sales website was offline with a statement stating it was undergoing maintenance.
The Bendigo Advertiser website attracted several comments from disgruntled shoppers on Wednesday.
''I did support this local business and now I'm out of pocket $1000 because I can't get my fridge I had on layby. I have called the number of the liquidators on the door but only get an answering machine. Next time I think I will shop at a bigger store,'' one reader wrote.