Bargain Retailer’s Dramatic Rescue: Cheap as Chips Saved from Collapse by Choice the Discount Store in Daring $0 Deal
- Cheap as Chips, a beloved discount retailer with over 500 staff, has been thrown a lifeline after plunging into administration this week.
- The chain’s parent company, Palcove, will be restructured, with 44 stores set to remain open, but three locations will shut their doors for good.
- Administrators have confirmed that all store employees will be retained after the sale, but a ‘small number’ of redundancies are expected at head office.
- The dramatic rescue deal marks a significant shake-up for Australia’s bargain retail sector, following Canadian chain Dollarama’s $259million takeover of The Reject Shop earlier this year.
In a stunning turn of events, Cheap as Chips, the discount retailer that has been a staple in Australian bargain hunting for over three decades, has been saved from collapse by Choice the Discount Store. The daring deal, which is set to more than double Choice’s footprint, has thrown a lifeline to the struggling retailer, securing the jobs of over 500 staff.
Administrators Glenn Livingstone, Benjamin Ho, and Nicholas Charlwood from WLP Restructuring Partners took control of the business after Cheap as Chips plunged into administration this week. The collapse follows a ‘challenging trading period’ for the retailer, with administrators citing cash flow constraints and fierce local and international competition.
Under the proposed agreement, 44 stores will remain open, but three locations, Albury in NSW, Wonthaggi in Victoria, and Windsor Gardens in Adelaide, will shut their doors for good. The administrators have confirmed that all store employees will be retained after the sale, but a ‘small number’ of redundancies are expected at head office.
‘The company will continue to honour its “chippie rewards” loyalty benefits and gift cards on a dollar-for-dollar spend basis, up until January 31,’ said Mr Livingstone. ‘We encourage all customers to redeem these rewards before they expire.’
The deal marks a significant shake-up for Australia’s bargain retail sector, following Canadian chain Dollarama’s $259million takeover of The Reject Shop earlier this year. Cheap as Chips first opened in 1985 in Morphett Vale, Adelaide, and quickly became a favourite among bargain hunters.
As the dust settles on the dramatic rescue deal, administrators are urging customers to continue shopping at Cheap as Chips stores, assuring them that it’s ‘business as usual’. The future of the retailer now rests in the hands of creditors, who will have the final say on the proposed deed of company arrangement at a meeting scheduled for January 12.