16 more Angus & Robertson stores shut, most franchisees tipped to go independent

The Angus & Robertson chain is all but dead after the administrator of REDGroup announced that 16 of the remaining 19 company-owned stores would close by the end of the month. Two stores have been sold and talks are continuing on the third.

Most of the 47 remaining Angus & Robertson franchisees are tipped to go independent, with the balance expected to join another franchise group such as Collins or Dymocks.

Dymocks bought one of the A&R company-owned stores, Carindale in Queensland, from administrators Ferrier Hodgson yesterday. Dymocks had previously purchased the Castle Towers store in Sydney from the administrator.

“We’ve been trying to get into Carindale for as long as I remember,” Dymocks CEO Don Grover says.

Grover flagged new Dymocks store openings in the middle of month, saying it will be “nice to see new stores opening”.

Ferrier Hodgson says the 16 store closures will not affect the remaining 47 A&R franchise stores.

The administrator says the franchise stores will “continue to operate independently although it is likely these will undergo various name changes in coming weeks”.

While an official announcement has not been made it’s believed that the 25 franchisees who unsuccessfully fought to scrap their franchise agreements with A&R after it fell into administration will continue to operate as independent stores.

Grover says Dymocks might end up with none or a couple of the remaining franchised stores.

“It’s good it’s in their hands,” Grover says. “Let’s hope they stay in the business.”

While the A&R brand is unlikely to adorn shopfronts by the end of the year it will continue online for the time being.

The online business, covering the Borders and Angus & Robertson brands, was sold this week to publisher Pearson Australia Group.

That sale, for an undisclosed price, raised eyebrows, with the Australian Booksellers Association calling for the competition watchdog to look into the deal.

The closures announced yesterday will cost 174 jobs in addition to eight redundancies at REDgroup headquarters during the past week.

“This brings the total number of store closures during the administration to 140. The number of job losses totals 2064,” Ferrier Hodgson said.

REDgroup, which appointed voluntary administrators in February, was once Australia’s largest book retailer with an estimated 20% market share.

In calls for expressions of interest in March it was listed as having 103 corporate stores – 25 Borders and 78 company-owned Angus & Robertson – together with 51 A&R franchise stores plus online businesses under both brands.

The latest stores to be closed are:

1. Castle Hill NSW
2. Miranda NSW
3. Port Macquarie Central NSW
4. Wollongong NSW
5. Brookside QLD
6. Capalaba QLD
7. Ipswich QLD
8. North Mackay QLD
9. Rockhampton QLD
10. Toowoomba Grand Central QLD
11. Townsville Castle QLD
12. Marion SA
13. Readers Feast VIC
14. Frankston VIC
15. Moonee Ponds VIC
16. Victoria Gardens VIC

The Harbourtown store in Queensland has been sold, Ferrier Hodgson says.