Hundreds of jobs saved after beloved Aussie discount retailer sold to rival following collapse into administration

More than 500 jobs have been saved after a beloved discount retailer was sold following its collapse into administration this week.

Choice the Discount Store has acquired the Adelaide-based Cheap as Chips chain, which runs 47 stores across South Australia, Victoria, and New South Wales, and employs around 525 staff.

Of the 47 branches, 44 are set to remain open under the proposed deal with all shop workers retained, however, there will be a “small number” of head office redundancies.

Three locations will close their doors for good: Albury in NSW, Wonthaggi in Victoria and Windsor Gardens in suburban Adelaide.

Administrators from WLP Restructuring have taken control of Cheap as Chips after it collapsed following a “challenging trading period”.

It reported a loss of $34.9 million for the 12 months to the end of June last year, according to the Financial Review.

Creditors will have the final decision at a meeting on January 12, as they must approve the sale under the proposed deed of company arrangement.

Glenn Livingstone, one of the administrators, has urged customers to redeem their loyalty perks before they become invalid.

“The company will continue to honour its chippie rewards loyalty benefits and gift cards on a dollar-for-dollar spend basis, up until January 31,” he said.

“We encourage all customers to redeem these rewards before they expire.”

“We look forward to working with all parties to finalise the restructure and enable the restructured business and the majority of employees to continue successfully into the future under Choice ownership,” the administrators added.

Choice the Discount Store has more than 35 stores across Queensland, Northern New South Wales, and Victoria.

Cheap as Chips started in 1985 with a store in Morphett Vale, South Australia, and grew into a company with more than 40 stores across the country.

The brand sells a range of goods including outdoor furniture, stationery, toys, home decor, and more.

Last month, Aussie jewellery retailer Secrets Shhh entered administration right before Christmas.