Interesting to see Strathfield in Administration.Different...

Interesting to see Strathfield in Administration.
Different company to VTG, common thread with Strathfield is they have lots of stores and were only returning a very slim return on revenue.

VTG were already closing stores long before the economic crisis began.

For VTG from the retail figures I have seen the real economic crises is hitting right now.

So if the figures from July to December look bad, they will be a whole lot worse Jan-Jun.

Problem for VTG is how many stores will have become or will be unprofitable from Jan-Jun.

Quite a few I would suggest.
So another store rationalization program is now due.
Everytime you close stores it costs money in Layoffs, write down of store fittings, Lease Break Fees etc.

So if management is proactive and want to survive they will be planning a store rationalization program right now.

The management of this company needs to go thump on David Moffats door in Telstra, and tell him that they need to receive more remuneration, or they will close 'x' stores, or worse that they are heading for administration.

I am sure Telstra needs the sales, VTG needs more money or it is a dead duck.

Time to do some door thumping....

Management.....if you are listening start thumping and don't give up until you get the deal you need from Telstra.

Getting a 1 month exclusive pink Samsung 480T from Telstra will not stimulate sales enough to get this company out of the proverbial.

If thats what they have offered you as compensation, that sucks big time.

The future of VTG is now at stake, and if a better deal is not received within the next few months from Telstra, then you have to question the long term future of the company.

David Moffat, "the rivers of gold" are gone.
Start coughing up, or destroy the dealer channel.