Collins Booksellers to take REDGroup’s Angus & Robertson franchises

Collins didn't specify how many stores have been acquired, merely noting that negotiations are continuing with a significant number of franchisees. The company currently has 52 franchised outlets across Australia and it said the Angus & Robertson deal would take its store network to more than 70.

Collins was founded in 1922 and, following a round of restructuring in 2005, is now owned by about 22 franchisees. It claims annual revenue of almost $50 million.

"We are cognizant of the difficulties Angus & Robertson franchisees have experienced in recent months through no fault of their own and the need for these franchisees to focus on what they do best which is operating successful retail bookshops," said Duncan Johnston, chairman of Collins Booksellers. "They will be able to do this with all the support and benefits provided by Collins Booksellers."

REDGroup, owned by Pacific Equity Partners, operates the Angus & Robertson and Borders brands in Australia. The company collapsed and was handed over to administrator Ferrier Hodgson in February, months after it was reportedly set to breach two of its three banking covenants due to an inability to repay debts of $158 million.

REDgroup's downward spiral has been attributed to the post-global financial crisis retail conditions, as well as competition from online sources such as Amazon.com.

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• Topics
• Australasia
• Consumer
• Restructuring
• Pacific Equity Partners