Is Radio Rentals almost Bankrupt?
Radio Rentals parent Thorn Group revealed in February that Radio Rental’s installation volumes had declined by 27 per cent. They further said that “The performance of Radio Rentals continues to deteriorate, and trading conditions are likely to be difficult in the medium term,” the company said in a trading update.
Thorn’s new CEO Tim Luce said the company is responding to its challenges and developing a “refreshed and extended” retail offering by doing “further promotional activity”
We do know that the “further promotional activity” is only annoying customers. Frank, a customer of Radio Rentals said he’s annoyed about the increase in emails and stupid promotions such as $1 per week for the first 12 weeks, they are just gimmicks that attempt to lock you in. You end up paying $3000 for a TV that can be bought from JB HiFi today for $570.
The one thing that stands out to us the most was when Wendy, a customer of 2.5 years said to us she can smell something not right when Radio Rentals are calling customers to chase up debts that have only occurred in the last few days and are for silly amounts like $8.92
It really is desperate times calls for desperate measures at Radio Rentals if they are stopping that low, the person calling to collect the money is earning more than the amount being collected.
The best advice here is to wait, save a bit and buy. If that’s not working for you check out eBay, Gumtree and other second-hand marketplaces. The model that Radio Rentals uses is dead and is declining in sales very quickly.
ZIP and Afterpay are also helping take a piece of the action from Radio Rentals. You are not locked into paying over 3 years with these finance options, so consumers are getting a better deal on these type of products.
Chet Carter is an IT Professional of 22 years, but has worked with a range of businesses giving him in-depth understanding of many different industries. Chet Carter is a business owner but shares his knowledge and experience through posts like these.