Radio Rentals will close all 12 of its South Australian stores, resulting in the loss of 100 jobs.

Key points: South Australia's Radio Rentals was founded in Adelaide in 1958

South Australia's Radio Rentals was founded in Adelaide in 1958 It is not associated with the interstate Radio Rentals owned by the Thorn Group

It is not associated with the interstate Radio Rentals owned by the Thorn Group Rental agreements are not affected

The company announced, in a statement released on Tuesday night, its plans to close its retail and online sales operations in June.

It blamed the closure on difficult retail conditions and online competition in the company's core business of electronics and household goods.

Radio Rentals started in Adelaide in 1958, following a model invented in the UK in 1937 to rent as well as sell radios and later other electronics.

South Australia's Radio Rentals is not associated with the interstate Radio Rentals owned by the Thorn Group, which was fined $2 million last year after admitting to breaking national consumer laws.

South Australian Radio Rentals managing director Nick Palmer said the closure was because of "increasingly difficult trading conditions over recent years across Radio Rentals' core business in the most competitive retail categories of electronics and household goods".

"This has resulted in significant performance decline despite the best efforts of everyone to reinvigorate the business," he said.

"This has been made even more difficult given the range of new disruptive players who have entered both the retail and consumer rental markets in the past couple of years.

"Maintaining sales volumes and margins has been increasingly challenging in recent years and supporting the retail cost structure has become unsustainable."

He said all employees affected by the announcement would receive all their entitlements, including superannuation and annual leave.

"The company will support and counsel employees who are impacted and help them to find new jobs," he said.



The consumer rental business, which finances rental contracts through various retailers, including Radio Rentals, is provided by inRent, which is owned by a separate entity and is not affected.