Thorn Group has made the closure of its Radio Rentals stores permanent, announcing the business will be an "online presence" in future.
Earlier this month, Thorn said it was closing all 62 Radio Rentals stores "until further notice". It said its primary focus was on the health, and safety of customer and staff.
Yesterday it said that about 300 full-time and casual staff would be made redundant as a result of the permanent closure of the stores and selected warehouses.
Thorn will also run down the Radio Rentals loan book, worth around A$123 million, to generate cash.
Radio Rentals accounts for about 80 per cent of Thorn's revenue and 40 per cent of earnings.
The company plans to develop the digital strategy for the business and enhance the product range.
"Thorn has also introduced new credit policies and collection processes as well as cutting head office costs, to ensure our business model remains sustainable," the company said.
It is experiencing increased arrears in both Radio Rentals and Thorn Business Finance.