The final chapter for the franchisees of collapsed book chain Angus & Robertson has almost been written. Twenty former franchisees that have now set themselves up as independent bookstores have joined buying group Leading Edge.
The news, reported in Bookseller & Publisher, comes a week after 18 former A&R franchisees announced they had joined Collins Booksellers as franchisees.
Leading Edge is a membership-based buying group that allows independent bookshops to tap into the buying power that larger chains enjoy and reap the benefit of marketing services run by Leading Edge, including catalogues and other promotional materials.
Established in 1984, the company also runs buying groups across the retail sectors such as jewellery, music, DVDs, computers, electronics and lingerie. The group provides services for 1,500 stores across Australia, including 200 independent bookshops.
Leading Edge Books general manager Simon Milne told Bookseller & Publisher the addition of the former A&R franchisees was a boost for the independent bookshop sector.
“In this tough retail environment many booksellers are choosing the independent model,” he said.
“In addition to the former A&R franchise stores, 10 other independent bookshops have joined our group this year. We are excited that the independent sector has grown its market share to over 23%, and our members continue to innovate and diversify for the future.”
A total of 47 A&R franchisees were caught up in the March collapse of REDgroup Retail, owner of the A&R and Borders brands.
A group of 25 stores attempted to break away from the franchise in April, but were prevented from doing so by Ferrier Hodgson, the receiver of REDgroup.
However, the decision to sell all of REDgoup’s assets and effectively wind the company down means the franchisees have been free to go their separate ways.
A special SmartCompany report into the plight of the franchisees published last week showed many former franchisees are positive about the future of book retailing despite the difficult state of the market.
Therese Appleby, the franchise owner of bookshops in Maroochydore and Kawana Waters, signed with Collins last week and says she feels she’s come to the end of a long rollercoaster ride.
“It was really hard because our trust levels were zero,” Appleby says. “But it was my husband who first went, ‘That’s where we’re going.’ I’m really excited about where this industry is going to go.”
The following franchisees have signed with Leading Edge:
Brown Books (Batemans Bay)
Deanswift Books (Nowra)
Harbour Bookshop Ulladulla
Hardback Café (Orange)
The Bookshop Bowral
The Kiama Bookshop
Town & Country Books of Goulburn
Manning Valley Books (Taree)
Newing’s Bookshop (Dapto)
The Bookshop Wagga
The Bookshop Darwin
Love That Book Helensvale
Love That Book Southport
Booked at North Adelaide
Booked at Unley
Pages & More Glenelg
Pages & More Mount Barker
Pages & More Victor Harbor
Pages & More West Lakes
Rockingham Books
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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