Dozens of South Australian retail workers have lost their jobs following the closure of eight retail stores previously run by Australia’s largest operator of SportsPower outlets.
The closures follow a deal struck between administrators of Adelaide-based Zorich Group and Associated Retailers Limited (ARL) – the co-operative buying marketing group behind more than 120 SportsPower franchises across the country.
As part of the agreement, detailed in the latest report to creditors, ARL will acquire and continue to trade four SportsPower outlets at Harbour Town, Colonnades, Renmark and Mildura, while the remaining stores in the Zorich Group network have been forced into closure.
They include SportsPower stores at Norwood, Gawler, Marion and Elizabeth, JT Surf outlets at Elizabeth, Gawler and Harbour Town, and a Rivalry Urbanwear store at Elizabeth.
Administrators confirmed around 45 staff would be retained by ARL at the acquired stores, while 25 full-time and part-time employees and 60 casual staff had been made redundant.
In his report, administrator Glenn Franklin from PKF said that while 11 groups expressed interest in acquiring the Zorich Group business, ARL was the only party to submit a formal offer by the May 22 deadline.
“Once the due date for offers lapsed and it became apparent that no offers would be received for the remaining stores, a clearance process was commenced to allow for all remaining stock to be sold prior to the closures,” the report says.
“The remaining stores ceased to trade by 29th June 2026 and the employment services of these relevant employees were terminated on 3rd July 2026.
“Employees that remain at the purchased stores were retained by ARL and their entitlements will be assumed by ARL as part of the sale agreement.”
ARL is one of Australia’s largest independent retailer buying groups, and represents a range of retail brands including SportsPower, Toyworld, Mensland and Camping World.
According to the administrator’s report, the sale agreement was struck at a price of just under $699,000, meaning a $3.9m secured debt to ARL and a $1.5m secured loan from Commonwealth Bank will only be partially repaid.
The report says that close to 100 unsecured creditors, owed $3.9m, including landlords and sports brands Adidas, Nike and Rip Curl, will not receive a dividend as part of the likely liquidation of Zorich Group.
Creditors will meet on Friday to determine whether to formally wind up the company following the sale and closure of its retail network.
Redundant employees owed more than $317,000 will be able to make a claim for their unpaid entitlements via the Fair Entitlements Guarantee safety net scheme.
Tom and Judy Zorich opened their first sports store at Salisbury in 1987, before growing their business empire into Australia’s biggest SportsPower operator with stores at Colonnades, Elizabeth City Centre, Gawler, Harbour Town, Marion, Norwood, Renmark and Mildura.
However administrators were called in on April 23 after at least five consecutive years of losses, and a slide in sales from $27.3m in 2021-22 to just $18.8m in 2024-25.