Friday, March 18, 2011

More job cuts, closures in store for REDgroup


Sydney Morning Herald, March 17, 2011
Chris Zappone

Administrators for Borders and Angus & Robertson have announced new lay-offs and warned that more bookshops could close.

The loss of 26 positions from REDgroup Retail's Melbourne headquarters are effective immediately, administrator Ferrier Hodgson said.

"As part of our restructure, we have had to make some cuts to the number of stores and the number of people working in head office," said Ferrier Hodgson partner Steve Sherman.
 "This is never an easy step. However, with the business continuing to lose money, it is a step that needed to be taken."

Mr Sherman also said he "could not rule out further store closures and redundancies in coming weeks".

On March 3 Ferrier Hodgson announced 37 Angus & Robertson stores and one Borders store would close, but warned that the move was only the first step in the company's overhaul. Those closures affected 321 full and part-time employees.

REDgroup Retail, the parent company of the two book chains, was placed in voluntary administration last month, owing $118 million to secured debtors.
The company, which struggled with high costs at a time of increased competition from the internet, also owed $44 million to unsecured creditors as well as $7.8 million to employees.

Total employment at the company is now total 1991, Ferrier Hodgson said.

REDgroup retail, majority owned by Pacific Equity Partners, has 260 Borders, Angus & Robertson and Whitcoulls stores in Australia and New Zealand, and Singapore.

Angus & Robertson has 103 stores affected by the voluntary administration. There are another 61 franchised locations of Angus & Robertson that won't be affected directly.

By state, 15 Angus & Robertson shops will shut in Victoria, 10 in New South Wales, seven in Queensland, two in Western Australia and the ACT, and one in South Australia.
The Borders store earmarked for closure is in Rouse Hill in New South Wales.

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