Major discount chain beloved by Aussies collapses - as customers are urged to redeem loyalty perks NOW
Customers of a beloved discount retailer have been urged to redeem their loyalty perks after the chain plunged into administration this week.
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By NICHOLAS COMINO, NEWS REPORTER, AUSTRALIA
Published: 01:17 GMT, 1 January 2026 | Updated: 01:56 GMT, 1 January 2026
A beloved discount retailer with more than 500 staff has been thrown a lifeline after the chain plunged into administration this week.
Cheap as Chips, which operates 47 stores across South Australia, Victoria and New South Wales, has been sold to competitor Choice the Discount Store.
The rescue deal will more than double Choice's footprint, which currently sits at about 35 stores across Queensland, NSW and Victoria.
Under the proposed agreement, Cheap as Chips' parent company, Palcove, will be restructured, with 44 stores set to remain open.
However, three locations, Albury in NSW, Wonthaggi in Victoria and Windsor Gardens in Adelaide, will shut their doors for good.
Administrators Glenn Livingstone, Benjamin Ho and Nicholas Charlwood from WLP Restructuring Partners have taken control of the business and say trading will continue while the sale is reviewed.
'All store employees will be retained after the sale,' WLP said in a statement to The Advertiser, however there will be a 'small number' of redundancies at head office.
No further store closures are expected.
Cheap as Chips (pictured) has been sold after collapsing into administration this week
The collapse follows a 'challenging trading period' for the retailer, with administrators citing cash flow constraints and fierce local and international competition.
The amount of debt outstanding remains unclear.
Creditors will have the final say on the retailer's future when they vote on the proposed deed of company arrangement, with a meeting scheduled for January 12.
Mr Livingstone has urged customers to redeem loyalty perks before they expire.
'The company will continue to honour its "chippie rewards" loyalty benefits and gift cards on a dollar-for-dollar spend basis, up until January 31,' he said.