Strathfield to open mega-store in major cities

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Strathfield to open mega-store in major cities

Strathfield Group has emerged firing from voluntary administration announcing sweeping changing to its retail strategy which include new stores and investment in new product lines.

As of March 6, control and operations of the company was returned to the new board and management after nearly five weeks under a deed of company arrangement.

Vaz Hovanessian, chairman of Strathfield Group said the group is now well positioned for growth with forecast for new stores, and an increased push in telecommunications.

"Over the next 18 months, 60 stores and a number of kiosks stocking mobile phones will open. [Additionally], in each city we would like to have mega-store.

"We will increase the number of stores, in better locations, and improve the quality of inventory carried to increase our margins," said Hovanessian.

Furthermore, Hovanessian said the board is thinking about introducing new product lines including office solutions, rental, home security and finance.

"Growth will come from these new market segments," he said. "By first to the middle of May we're hoping the company will be back on the ASX."

According to Hovanessian, Strathfield Group is now debt-free. In order to present a strong balance sheet, 62 stores deemed un-viable have closed out of the company's 96.

Moving forward, Strathfield Group will increase its franchised stores. "Historically our franchise groups have been more profitable, we've been quite selective with our franchisees. To be considered, they need to have both telecommunications and retail experience.

"Most of the stores will run as franchises to reduce the risk of liabilities, such as leases and employees, to the company.

As of March 23, the company was allowed to trade as Strathfield Group Limited without any reference to any administrators.

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