Gloria Jeans franchisees inside closing Borders stores get May 31 deadline

Gloria Jeans franchisees trapped inside Borders book stores that are being closed by the administrators of RedGroup Retail have been told their stores will be shut down on May 31.

A total of 14 Borders stores will finally close their doors on that date, as administrators from Ferrier Hodgson work to try and salvage a return for creditors from the wreckage of the collapsed RedGroup Retail.

A total of 17 Borders stores have been closed since the appointment of administrators, along with 55 Angus & Robertson stores.

While no A&R franchsiees have so far been affected by the collapse, 14 Gloria Jeans franchisees who had coffee houses inside Borders stores are being forced to shut.

Gloria Jeans says it is working with 12 individual franchisees to determine “bespoke” relocation strategies.

“In this situation, our primary concern is our people and our overriding objective is to ensure business continuity for our franchise partners,” Troy McDonagh, general manager of Gloria Jean’s Coffees, said in a statement.

Gloria Jeans has hired Damon Smith, founder of Rockabee Consulting, to oversee the relocation efforts over the next four months.

Smith will concentrate on finding new sites for the franchisees to try and get them up and running as quickly as possible.

He has already confirmed the relocation of one franchise partner and successfully negotiated with a landlord to allow one of the affected coffee houses to remain in the same location despite Borders closure. as it has a street front entrance.

The affected stores are:

• Borders Rouse Hill (closed 31 March 2011)
• Borders Adelaide
• Borders Macarthur Square
• Borders Chatswood
• Borders Hornsby
• Borders Kotara *
• Borders Macquarie
• Borders Parramatta
• Borders Tuggerah
• Borders Brisbane
• Borders Mt Gravatt/Garden City *
• Borders Doncaster
• Borders Geelong
• Borders Highpoint
• Borders Jam Factory