Angus & Robertson franchisees nervous as administrators close 12 more stores

Franchisees of the Angus & Robertson book chain face an uncertain future, after administrators to the REDgroup Retail announced the closure of a dozen more Angus & Robertson book stores, cutting 102 jobs.

Workers at Angus & Robertson franchised stores contacted by SmartCompany this morning reported a “noticeable” drop in sales since the appointment of voluntary administrators to REDgroup Retail, owner of the Angus & Robertson and Borders book chain, in mid-February.

One Angus & Robertson worker said the impact on franchisees was an “untold story”, while another said already-fragile sales had weakened after Ferrier Hodgson’s appointment to the private equity-owned REDgroup.

The branch closures, announced yesterday, leaves just 67 Angus & Robertson stores in Australia and 25 Borders stores. Ferrier Hodgson announced the closure of 37 Angus & Robertson stores last month.

While the announcement does not directly affect franchisees, whose individual stores do not fall under the RedGroup structure, the combination of bad publicity and uncertainty over the wider group is likely casting a shadow over an industry under pressure from consumer caution and online sellers.

While Ferrier Hodgson says the latest closures will not affect Angus & Robertson franchised stores, one worker said he had done plenty of explaining to customers that their stores was a franchise, and the business was suffering from the “poor association.”

Administrators Ferrier Hodgson were appointed to REDGroup Retail in mid-February, as the private equity-owned business collapsed under the weight of its debt load.