Cheap as Chips Collapse Ends With Jobs Saved and Stores Reopening Under New Owner
There has been a huge sigh of relief across Australia’s bargain-hunting community this week after the collapse of Cheap as Chips took a far more hopeful turn than many first feared. What began as worrying news about a beloved discount retailer entering administration has now ended with hundreds of jobs being saved and most stores staying open.
Cheap as Chips, a familiar name for shoppers looking for low-cost household goods, toys, stationery, and outdoor items, was placed into administration after what was described as a challenging trading period. Losses had continued to mount, and the business was no longer able to operate as normal. For a brand that had been part of Australian retail life since the mid-1980s, the news hit hard, especially for staff who suddenly faced an uncertain future.
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But that uncertainty did not last long. The chain has now been snapped up by rival retailer Choice the Discount Store, and more than 500 jobs have been rescued as part of the proposed deal. Around 525 employees had been working across Cheap as Chips’ 47 stores in South Australia, Victoria, and New South Wales, and it has been confirmed that 44 of those stores are set to remain open. All shop-floor staff at those locations are expected to be retained, which has been welcomed as a rare piece of good news in a tough retail environment.
That said, not every location will survive the transition. Three stores, in Albury, Wonthaggi, and Windsor Gardens in Adelaide, are set to close permanently. In addition, a small number of head office roles are expected to be made redundant, showing that while the outcome is positive overall, it has not come without some painful decisions.
Administrators from WLP Restructuring have taken control of the business during the process and will oversee the final steps. Creditors are due to vote on the sale at a meeting later this month, where the proposed deed of company arrangement will be considered. Customers have also been urged to act quickly, as loyalty rewards and gift cards will only be honoured up until the end of January.
For many Australians, Cheap as Chips has always been more than just another discount store. Since opening its first shop in Morphett Vale back in 1985, the brand steadily grew into a nationwide presence. While its future now sits under new ownership, the heart of the business appears to have been preserved. In an era where retail collapses often end in total shutdowns, this outcome stands out as a reminder that second chances are still possible.
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