Cheap as Chips, a discount retailer owned by private equity firm Alceon, has been placed into administration and is poised to be acquired by rival Choice The Discount Store.
Administrators from WLP Restructuring, including Glenn Livingstone, Benjamin Ho, and Nicholas Charlwood, have taken day-to-day control of the business and will oversee the sale.
The Adelaide-based retailer employs hundreds of staff across South Australia, Victoria, and New South Wales. Under the proposed deal, 44 of its 47 stores are expected to remain open, with closures planned only for outlets in Albury (NSW), Wonthaggi (Victoria), and Windsor Gardens in suburban Adelaide.
Store employees are set to retain their jobs, though redundancies are likely at the company's head office.
Cheap as Chips reported a $34.9 million loss for the year ending June last year, according to its most recent accounts lodged with the corporate regulator.
WLP said the administration followed a challenging trading period marked by funding constraints and increased competition both locally and internationally.
The process will allow an independent review of the sale terms with Choice The Discount Store and provide a framework to restructure the company’s financial obligations.
Choice The Discount Store, established in 1996 and operating 35 outlets across Queensland, northern NSW, and Victoria, will continue the ongoing reshuffle of Australia’s discount retail sector, following Dollarama’s $259 million acquisition of The Reject Shop earlier this year.
During the administration, Cheap as Chips’ "Chippie Rewards" loyalty benefits and gift cards will remain valid on a dollar-for-dollar basis until Jan. 31, 2026.