Lights out for Sleep City workers
ROCKHAMPTON employees of Sleep City and Everyday Living in the Red Hill Homemaker Centre yesterday refused to discuss their futures after the announcement they would be made redundant with the closure of the chain stores within the next eight weeks.
The stores' parent company, Furniture and Bedding Concepts Ltd, was placed into voluntary administration earlier this month after a continuing downturn in the retail market.
Sixty-four Sleep City stores will be closed, with the loss of about 450 jobs.
Appointed administrators, PricewaterhouseCoopers, announced the closure on Sunday.
PwC partner Michael Fung said the financial position of the businesses did not allow for ongoing trade beyond the two-month "wind down" period.
The company has entered into an in-principle agreement with Hilco Merchant Australia to liquidate remaining stock.
Mr Fung said as many staff as possible would continue to be employed until the stores were closed, at which point all staff would 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."