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Laid to rest: 400 SleepCity jobs lost with retailer's closure

27/02/2012 - More than 400 jobs will be lost when the troubled bedding retailer SleepCity closes its doors within eight weeks.

The company was placed in voluntary administration earlier this month amid a continuing downturn in the retail market.

PricewaterhouseCoopers (PwC) was appointed administrator of parent company Furniture and Bedding Concepts Ltd and four other related entities.

PwC partner Michael Fung announced on Sunday a decision had been made to wind down the businesses over the next six to eight weeks.

"The financial position of the businesses did not allow for ongoing trade beyond this wind down period," Fung said.

The 64-store chain has about 450 employees.

PwC said it has entered into an in principle agreement with Hilco Merchant Australia to liquidate remaining stock.

"This arrangement will enable us to maximise the return from the companies' existing stock for the benefit of creditors including employees."

Fung said as many staff as possible will continue to be employed until the wind down is completed, at which point all staff will be made redundant.

"The in principle arrangement with Hilco provides some certainty on the pool of funds available to satisfy employee entitlements," he said.

"Should there be insufficient funds to pay employee entitlements in full, employees may be able to claim the balance of their entitlements under the Federal Government's, General Employee Entitlements and Redundancy Scheme."

The company sells beds, mattresses and bedroom furniture under the Sleep City and Everyday Living brands in Sydney, Melbourne, Brisbane, Adelaide and Hobart.


Source: AAP NewsWire
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