By NOEL MURPHY
DIMMEYS Geelong staff face an uncertain future as administrators look to sell the budget retail chain after it sustained $3 million in fines for breaking safety laws.
The Geelong retail fixture for generations, presently sited in Little Malop Street, employs 10 people. Manager Simon Patterson said staff were hopeful the store would continue as a going concern.
The administrators – appointed voluntarily by Dimmeys – are examining the trading and financial position of the company but have said that, at this stage, all Dimmeys stores will continue to trade as normal.
The administrators will also be assessing the viability of the company’s business with a view to placing the company’s business and assets on the market for sale.
Richard Cauchi, Peter Gountzos and Michael Carrafa of SV Partners in Melbourne have been appointed as the administrators.
“At the moment, we’ve been told it’s business as usual,” Mr Patterson said.
“We’re still hopeful, we’re still thinking good thoughts, we’ve been told everything is still all right.”
Mr Patterson said the Geelong Dimmeys store had been “taking it hard, every retailer is taking it hard” but had a “good period over Christmas” which “was a positive”.
Dimmeys was last year fined $3 million for breaching product safety laws with girls’ swimwear, baby bath squeeze toy sets, shower gift set and basketball rings.
The Federal Court also fined distribution company Starite Distributors $600,000 and Douglas Zappelli, director of both companies, $120,000. Zappelli was also banned from managing corporations for six years.
The Dimmeys chain employs 500 people in stores across the country. It has been involved in several cases of selling hazardous products or incorrectly labelled items in recent years.
