Franchisee-owned Collins Booksellers has snapped up a group of Angus & Robertson franchises as well as flagging more purchases and store openings in the next couple of months.
Collins managing director Daniel Jordon says an initial group of stores will move across to his company immediately and Collins is continuing discussions with independent stores and administrators about further acquisitions.
“The conversation is continuing,” Jordon says.
The number of former A&R franchisees acquired by Collins is unknown but it is believed to be in double digits, with prices for the stores not disclosed.
Jordon says the company will be unveiling an eBook offering via its stores and online and that the purchased A&R stores are across Australia.
“The buy reflects the network spread of the A&R network,” Jordon says, with predominantly company-owned stores found in the metropolitan areas.
Collins has 52 stores and Jordon expects that number to grow to more than 70 as the former A&R stores join and the company opens new Collins stores.
Jordon expects the Collins market share to jump to 12% from about 5%, making Collins the largest network of franchise-owned stores in the book sector.
Industry insiders have expressed relief that the A&R break-up saga is nearing an end.
About half of the A&R franchisees unsuccessfully sought to break their franchise agreements after REDgroup collapsed, arguing that they were not receiving the benefits of remaining a franchise.
REDgroup, which appointed a voluntary administrator in February, was once Australia’s largest book retailer with an estimated 20% market share.
In Ferrier Hodgson’s calls for expressions of interest in March, REDgroup was listed as having 103 corporate stores – 25 Borders, 78 company-owned Angus & Robertson – plus 51 A&R franchise stores and online businesses under both brands.
Earlier this month the administrator said 16 of the remaining 19 company-owned stores would close by the end of the month, two had been sold and talks were continuing on the third. There has been no update on the fate of the third store.
After Dymocks snapped up two company-owned stores this month CEO Don Grover told SmartCompany it might end up with more A&R stores. Dymocks plans to open new stores this month but has no update on further talks.
Ferrier Hodgson flagged earlier this month that the remaining A&R franchise stores would “continue to operate independently, although it is likely these will undergo various name changes in coming weeks”.
REDgroup’s online business, which covers Borders and Angus & Robertson, was bought by Pearson Australia Group for an undisclosed sum.
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