Theatre at Home faces reel trouble: Admin drama hits home cinema chain

The Australian retail landscape has been dealt another blow as the beloved home cinema and electronics chain, Theatre at Home, along with its related audiovisual technology company, Roqo, have entered administration.

This move has not only led to a cessation of trading and the shuttering of stores but has also sparked a contentious legal battle over the legitimacy of the administration process.


Theatre at Home, known for its high-quality home entertainment systems and expert advice, has been a go-to destination for audiophiles and home cinema enthusiasts across the country.

However, the recent turn of events has left customers and employees alike in a state of uncertainty.

According to the appointed administrators from Nicols and Brien Sydney, trading was abruptly halted when landlords of several company locations locked out the businesses prior to the administration announcement.


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The Australian home cinema company, Theatre at Home, and its related audiovisual technology company, Roqo, entered administration. Credits: Facebook / Theatre At Home


Steven Nicols, appointed as administrator on April 15, stated that the insolvency firm was conducting an ‘urgent assessment’ of Theatre at Home and Roqo’s operations.

‘Some of the landlords of the various premises had locked out the two companies well before our appointment as administrators,’ he said.

‘We are mindful of this effect on employees and deposit holders, and we will be urgently trying to preserve value in the two companies by offering the businesses for sale shortly.’

‘Unfortunately, 23 jobs are affected by these developments,’ he added.


In a surprising twist, it has been reported that Theatre at Home is challenging the appointment of the administrator.

If the legal dispute is resolved in favour of the company, it will no longer be in administration.

‘The appointment of an administrator over Theatre At Home is under dispute, as we believe this appointment is unlawful,’ a spokesperson said.

‘Lawyers have been engaged to manage these proceedings and we are unable to comment further until the dispute is resolved.’


Creditors are set to convene for their first meeting on Friday, which will likely shed more light on the company's financial standing and the next steps in this legal tangle.

The company operates stores in various locations including Castle Hill, Moore Park, Tuggerah, and North Parramatta in NSW; Adelaide in South Australia; Nunawading in Victoria; and Jindalee and Fortitude Valley in Queensland.

The Castle Hill store is unaffected and continues to trade as usual.


Theatre at Home is the most recent among the companies that have gone into administration.

At the start of the year, a popular cleaning brand and a craft beer company were the first ones to do so.

The following month, a vacuum retailer followed suit, then another brewery and a restaurant chain.

They were then followed by a retail group that entered voluntary administration just this month.
Key Takeaways
  • Theatre at Home, an Australian home cinema company, entered administration alongside the related audiovisual technology company Roqo.
  • Trade was stopped due to landlords locking the companies out of several locations, leading to involvement from administrators Nicols and Brien Sydney.
  • An urgent assessment of Theatre at Home and Roqo's operations is being undertaken, with potential business sales to preserve company value.
  • There is a legal dispute over the lawfulness of the administrator's appointment, with 23 jobs affected and some company stores continuing to trade normally.
Have you been affected by the administration of these companies? What are your memories of shopping at these stores? Let us know in the comments below, and stay tuned for updates on this developing story.
 
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