Angus & Robertson shuts another 42 stores, future of franchisees in doubt

The future of Angus & Robertson franchises remains in doubt, after administrator Ferrier Hodgson announced a further 42 stores would close, leaving just 19 company-owned stores alongside the franchise network.

The A&R closures will cost 519 people their jobs, with 429 coming from stores and 90 from head office. The closures are expected to be completed within four weeks.

Ferrier Hodgson expects talks on the sale of the 19 remaining A&R stores to be finished within a fortnight, and says “negotiations continue with a number of book retailing specialists in relation to both the franchise network and the online business.”

Dymocks and Collins Booksellers have been nominated as likely buyers. It’s said the pair, which has more than 20% market share between them, could be interested in picking up additional franchises, particularly given the challenges for recruitment over the past couple of years.

Ferrier Hodgson partner John Melluish says the store sales would save about 200 jobs, in addition to those associated with the franchise and online businesses.

The administrator adds that the store closures do not affect the 48 A&R franchise stores, 25 of which unsuccessfully sought to break away from the collapsed REDgroup Retail after Ferrier Hodgson was appointed.

What happens next for franchisees is unclear: some have speculated franchisees might band together to buy the brand, while a new owner might choose to keep the A&R brand or fold the franchisee into their branding.

The length of the sales process suggests price is an issue. That about half of the A&R franchisees sought to trade as independent businesses also suggests there is confidence among some stores about their ability to maintain supplier relationships and clientele.

The announcement of further store closures, flagged by SmartCompany last week, follows an announcement at the start of the month that the nine remaining Borders stores would close.

When the debt-laden REDgroup Retail fell into voluntary administration in mid-February, its assets included 25 Borders stores, 78 company-owned Angus & Robertson stores and 51 franchise stores, plus online businesses for both Borders and A&R brands. REDgroup, owned by Pacific Equity Partners, was once Australia’s largest bookseller with 20% market share.

The closures cap a disastrous week for retail, with Colorado yesterday announcing more than 1,000 people would lose their jobs with the closure of 140 stores.

Thirteen of the store closures are in Queensland, 10 in New South Wales, nine in Victoria, four in Western Australia, three in South Australia and three in Tasmania.

The closing stores are:
1 Penrith Plaza NSW
2 Albury NSW
3 Charlestown NSW
4 Chatswood Chase NSW
5 Kotara NSW
6 Maitland Greenhills NSW
7 Pagewood NSW
8 Queanbeyen NSW

9 Rhodes NSW
10 Salamander Bay Nsw
11 Burleigh Heads Qld
12 Kipparing Qld
13 Bundaberg Qld
14 Cairns Central Qld
15 Cannon Hill Qld
16 Logannholme Qld
17 Mt Ommaney Qld
18 Po Square Qld
19 Rockhampton Fitzroy Qld
20 Stafford Qld
21 Toowong Qld
22 Townsville Nathan Qld
23 Mackay Qld
24 Tea Tree Plaza SA
25 Adelaide Market SA
26 Elizabeth SA
27 Devonport Tas
28 Hobart Tas
29 Launceston Tas
30 Forest Hills Vic
31 Melbourne Vic
32 Fountain Gate 2 Vic
33 Ballarat Vic
34 Fountain Gate Vic
35 Greensborough Vic
36 Ringwood Vic
37 Southland Vic
38 Werribee Vic
39 Belmont WA
40 Morley WA
41 Warwick Grove WA
42 Subiaco WA