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The parent company of Radio Rentals will bolster the retailer's online presence after announcing the closure of 62 stores and selected warehouses earlier this month.
The closures meant approximately 300 in-store and head office employees were made redundant, according to Thorn Group (ASX: TGA).
To manage the downturn in the retail sector Radio Rentals will operate online. Thorn says the group's website will be enhanced with an expanded product range to match the needs of its customer base during the Covid-19 crisis.
"I am disappointed that we have been forced to make hard decisions regarding our staff and store network, however they have had to be made to ensure Thorn Group continues to operate and thrive in the future," says Thorn Group CEO Peter Lirantzis.
"We intend to re-develop both the Radio Rentals' digital business model and Thorn Business Finance once the Covid-19 crisis has passed."
Lirantzis says Thorn has around $40 million in cash presently and is actively pursuing a range of cost-cutting initiatives and recovery processes to generate increased cash flow over the next year.
These include new credit policies and collection processes, as well as cutting head office costs.
Updated at 10:21am AEST on 23 April 2020.
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