Adelaide retailer Truscotts Casual Living collapses into receivership

Iconic Adelaide electrical and furniture retailer Truscotts Casual Living has been placed in receivership with debts of $5 million.

The company, which operated 14 stores up in Adelaide up until a few months ago, collapsed on Saturday. The business employs around 100 people.

Ernst & Young partner Chris Munday has been appointed receiver and now plans to offer the business for sale as a going concern.

“That’s always the desire of a receiver,” Munday says. “It relies on a lot of key stakeholders supporting us for that to happen, including the key suppliers, landlords and of course the staff.”

Munday’s team spent yesterday contacting 25 to 30 “logical buyers” for the business and will advertise in print media over the coming days.

He would like to have the sale completed within two weeks. “The sooner the better,”

Munday says debts are around $5 million, all this could go higher as unsecured creditors come forward. “The records are unfortunately not in the most accurate state,” Munday says.

While it is too early to pinpoint a reason for the collapse, Munday expects it will be a “combination of factors”, including the economic slowdown and “some management issues”.

The Truscotts brand has been a part of the Adelaide retail sector for over 40 years. The business was purchased in late 2006 by Christopher and Janine Starrs, who bought the Casual Living six months later. They then bought Retravision’s three metropolitan stores, bringing their total number of outlets to 14, with about 160 staff.

Four of these stores were closed in the weeks before the company was placed in receivership.