Good News/Bad News – the continuing story of REDGroup Retail

There have been major developments in the last few days with the various REDGroup Retail brands, Whitcoulls, Borders and Angus and Robinson (A&R) on both sides of the Tasman.

Here, Booksellers NZ    consolidates the information that has been issued in a series of media releases from Ferrier Hodgson the Administrators of the troubled group.

The bad news is that 12 Angus & Robertson stores and 16 Borders Stores are to close in Australia. 25 A&R franchise stores, which were not in Administration, have declared independence from the franchise and reverted to their separate brand names.

The good news is that in New Zealand, 10 Whitcoulls airport stores have been sold to specialist travel retail firm, LS Travel Retail Pacific and that the Administrators have confirmed  that there are to be no store closures across the Whitcoulls, Bennetts and Borders brands.

The closures announced in Australia will result in 610 job losses according to Ferrier Hodgson including both permanent and casual staff.

The restructure will leave open 163 Red Group Retail outlets, including the nine Borders and 67 A&R stores in Australia as well as 87 stores in New Zealand.

Administrator Steve, Steve Sherman said the remaining store footprint maximised the opportunities for either a sale or restructure of the business “both of these options are currently being examined.

“Through these progressive restructures we are moving the business toward a more sustainable model.  It is my hope that the resulting business is able to stand on its own two feet as well as being more attractive to any potential buyer,” said Mr Sherman.

The online businesses of the group are no affected by the restructuring announced so far.