Harvey Norman has appointed an administrator for three of its failing subsidiary stores.
Late Friday, the company announced the appointment of accountant and liquidator David Levi of Sydney’s Levi Consulting to oversee the administration of one Clive Peeters store in Bendigo, Victoria, and two Rick Hart stores in Mandurah and O’Connor, Western Australia.
In August this year Harvey Norman reported a $41.07 million loss following the $55 million purchase of 29 Clive Peeters and Rick Hart stores in July 2010. The Clive Peeters group was close to appointing administrators following an embezzlement scandal and debt issues.
It was a purchase Harvey Norman's management now regret.
In August, the company announced its intention to shut down seven Clive Peeters and Rick Hart stores and rebrand 16 more into Harvey Norman branches.
"The Clive Peeters and Rick Hart brand formats have not achieved the requirement for ongoing investment by the company," the company noted at its August briefing.
Harvey Norman declined to comment when contacted by CRN today.