UPDATE 1pm: IGA owner Barry Entwistle's supermarket at Bucasia Beach is not going into receivership, but has been put into voluntary administration.
Mr Entwistle said he bought the supermarket as a Foodworks 14 years ago and had his son manage the store.
While he closed his Supa IGA in Seville, Victoria, earlier this year, due to declining sales and increased competition, he said this was not the reason he hoped to sell his Bucasia store.
"We invested about $1 million two years ago, assuming the miming boom would continue,” Mr Entwistle said.
"However, when the crash happened, we could no longer sustain the expenses from the debt we incurred.
"I really hope the business can be sold so the staff who are currently there can all keep their jobs.”
Mr Entwistle said he considered himself one of the casualties of the crash.
Dennis Offerman, a prinipal with Offermans Partners, is one of the voluntary administrators assigned to the store with Michael Brennan.
Mr Offerman said their intention was to sell the supermarket as soon as possible, but until then it would be "business as usual”.
"We're currently working to obtain a result for creditors,” he said.
"Until then we want to increase the trading and are taking steps to do that.”
INITIAL: THE IGA at Bucasia Beach has gone into receivership.
The administration of the supermarket is being handled by insolvency practice Offermans Partners in Townsville.
Originally a Foodworks, the store switched to an IGA about two years ago.
Owner Barry Entwistle bought the Bucasia store about 11 years ago; however, he also owned a supermarket in Seville, Victoria, which closed in July this year.
An article in the Sydney Morning Herald said Mr Entwistle closed his Supa IGA due to declining sales after a Woolworths opened in the small town two years ago.
The Northern Beaches area currently has two other supermarkets. A Woolworths opened at Rural View in 2011, while a Bi-Lo was "re-badged” to Coles in 2010.
Cassie Helen, of Rural View, who worked for the supermarket when it was still a Foodworks in 2003, said the store definitely looked like it had struggled recently.
"It used to be more of a corner store, but they expanded quite a lot a few years ago,” she said.
"As they're the only supermarket open on public holidays they're busy then, but outside of that it can get fairly quiet.”
FACEBOOK | What you're saying
Michael Pinyon: Lots of businesses are suffering big time out there. Labour costs are generally the biggest overheads at the moment
Amanda Birnie: Aaron that IGA saved us so many times.
Megan Joan Jenkins: Oh no.
Maureen Solager: Oh how sad.
Sharon Bartley: Candace. How sad is this. We would have been lost at times without this store. 😔😔
Candace Grady: Wonder if that last reno/extension really didn't work 😞 will be devo if it shuts.
Marvs Pacey: That's very sad... they have been a part of the community for so many years.
Margaret Houston: This is one of the saddest times in Mackay. "People” say " oh it will get better” I don't think so. Mackay is in real trouble.
Dianne Miller: I'm surprised, they always had a lot go there, but with Coles and Woolies just down the road it was just a matter of time.
Kurt Quentin Mcdonald: That's what happens when you approve 50 new Woolworths and other shops in a struggling town.