Move fails to reinvigorate hobby business
A BUNDABERG retailer has been forced to close after a move to a new prime CBD location failed to boost flagging sales.
J & A Davis Pty Ltd, trading as Bundy Hobbies and Toys, went into voluntary administration last month after receiving a statutory demand from the company's major supplier, which it was unable to pay.
John and Joy Davis are listed as directors of the company, which has been operating since 2012 at Maryborough St before its recent move.
The hobby shop catered for a wide range of interests, from model trains to remote control cars, planes, boats, helicopters, plastic kits, slot cars, rockets, kites and hobby accessories.
In March this year, Mr Davis spoke to the NewsMail about the move from Maryborough St to Bourbong St and how he hoped to be a part of Bundaberg Regional Council's CBD revitalisation.
"Since moving we have had a lot of walk-in interest,” Mr Davis said at the time.
"We've been trading for five years and some people who come in didn't even know Bundy still had a hobbies shop.”
Morgan Lane and Chris Cook, from Worrells Solvency Forensic and Accountants, were appointed voluntary administrators on June 12.
A preliminary investigation indicated the company became insolvent in November last year and had remained so until the appointment of administrators.
According to a report to creditors, the company owed about $500,000 and had assets totalling $84,000.
Mr Lane told the NewsMail that the business had been struggling for a while.
"As part of its attempts to revitalise and get more business they moved premises to the former Dick Smith building on the main street,” Mr Lane said.
"Unfortunately, things didn't happen.
"There it is a lot of pain out in the world right now, especially in retail, and unfortunately the business suffered.”
Mr Lane said the next creditors meeting would be held next Monday where they would vote on the future of the company.
"Our recommendation at this point will be for creditors to vote the company into liquidation,” he said.