Administrators have been called in for both sports store Paul’s Warehouse and furniture retailer Dare Gallery.
Trying to keep afloat, the retailers blame their problems on higher interest rates causing consumers to spend less money in their stores.
Most of Paul’s Warehouse 20 stores are at risk of closing down, with one already shut down and another two to close its doors by the end of this month.
According to Paul’s Warehouse administrator, PKF, the combination of interest rate rises hurting consumers and the major cost of its debts had hurt the company, with the company probably having to close down all its stores to pay off debts which means more than 300 staff could lose their jobs.
Dare Gallery is not much better off and has already closed down its Castle Hill store with more closures to come.
According to its administrator Deloitte there is a good possibility that all 12 stores will be sold, which means about 60 staff will be out on the street.