Can business crawl out of trouble or will it all end in tears?

The My Baby Warehouse store in Penrith
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The future of the My Baby Warehouse store in Penrith is uncertain after it entered voluntary administration late last week.

Administrator Cor Cordis was appointed to My Baby Warehouse stores across Sydney, with the company explaining they plan to keep trading for now.

“The company will continue to trade for now but whether that changes or not is unknown at this stage,” a spokesperson for Cor Cordis told the Weekender.

“The financial position needs to be reviewed, which is still in the very early stages, and then they can decide what they are going to do with the business.”

Customers are unhappy, with lay-by purchases and gift cards not being honoured at this stage, with the potential for consumers to lose their deposits.

Melissa Smith, of Oxley Park, has a current lay-by worth $700 that includes a pram and bassinet, with $400 already paid towards it.

Her baby is due on January 26.

“My partner and I just want our money back or to be able to buy out the rest of our lay-by, but none of that is possible right now which is really frustrating,” Ms Smith told the Weekender.

“It’s quite upsetting, especially near Christmas time, with a baby on the way and a four-year-old, to be told your purchases are sitting there and the money is there but there is nothing that can be done right now.”

A meeting with the creditors is scheduled for next week, with Cor Cordis explaining it’s still very preliminary at this stage.

“It’s too early to tell exactly what the financial position of the company is but hopefully by the end of January, when another meeting will be held with creditors, it will be pretty obvious by then,” the spokesperson said.

Cor Cordis will be investigating the circumstances around the collapse of My Baby Warehouse and will look into several options.

Whether or not the Batt Street store in Penrith survives is uncertain.

“It could be that My Baby Warehouse will close its doors, we might recommend to sell it to another operator or competitor, or we might re-finance it and trade it as voluntary admin until it trades its way out,” the spokesperson said.

It’s understood staff are unaffected at this stage with trading still continuing.

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