Australia’s largest operator of SportsPower stores has fallen into administration, putting 130 retail jobs in limbo as the cost of living crunch continues to weigh on the retail sector.
Administrators Glenn Franklin and Paul Allen from PKF have taken control of Adelaide-based Zorich Group, which runs a network of eight SportsPower outlets across South Australia and in Mildura, as well as a Rivalry Urbanwear store and three JT Surf stores across Adelaide.
Mr Franklin said the stores continued to trade on a “business as usual basis”, and he would soon commence a sale campaign in a last ditch bid to find a white knight to rescue the company.
“As part of the administration process, the administrators will commence an expressions of interest campaign for the potential sale of the company’s business and assets, including its retail store network,” he said in a statement.
“The administrators are engaging with relevant stakeholders, including the company’s secured creditor and directors, as assessments of the company’s affairs continue. The company’s operations are continuing on a business‑as‑usual basis.”
ASIC records show the administrators were appointed by secured creditor Associated Retailers Limited (ARL), the co-operative buying and marketing group behind more than 120 SportsPower franchises across the country.
ARL also represents other retail brands including Toyworld, Mensland and Camping World.
Zorich Group was established in 1987 by husband and wife duo, Tom and Judy Zorich, when they opened their first sports store in Salisbury.
Zorich Group was established in 1987 by Tom and Judy Zorich. Together, the husband and wife duo grew their sport and fashion empire over the years with additional SportsPower stores, including at Colonnades, Marion, Norwood and Renmark.
At both Harbour Town and Gawler, the company operates two stores under the SportsPower and JT Surf brands, and it also runs SportsPower, JT Surf and Rivalry Urbanwear outlets at the Elizabeth City Centre shopping centre.
Mr Zorich, a former Central District footballer and president, previously ran as a Liberal candidate for the seat of Wakefield in the 2013 federal election.