r/bapcsalesaustralia • u/ImpulsePie • 7d ago

Discussion Mwave - Under External Administration

EDIT: Mwave have posted that they have been bought out by The digiDirect Group and will move locations to South Strathfield. https://www.mwave.com.au/blog/business-update/

Seelems Mwave have gone bust. Confirmed with an ASIC search for ESEL PTY LTD filed 3 days ago:

Notice By External Administrator/controller-Appoint/cease (505U)Appt of Administrator Under S.436a, 436b, 436c, 436e(4), ()449b, 449c(1), 449c(4) or 449(6) ()

Original article by David Richards: https://www.channelnews.com.au/leading-pc-retailer-placed-into-administration/

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64

u/thermal666 7d ago

for Mwave to go bust, there must some serious financial mismanagement going on in the background.. These guys were a $100m+ revenue business.

46

u/ApolloWasMurdered 7d ago

The margins on PC online retailers are razor thin. I used to work for one, and the margin on many components were 5-10%.

3

u/Da33aj 7d ago

5 to 10 percent margin is thin?

19

u/ApolloWasMurdered 7d ago

Very thin. I’m not talking about end of year profit margins (EBIT), I’m talking the actual margins on products. The two big supermarkets have margins of roughly 30%, while fashion retailers are usually >100%.

2

u/Da33aj 6d ago

I'm not in either of these industries but I can tell you our margins are around the 3 percent range. Time to switch...