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Shopping centre operators across
Australia will take a significant hit
based on the list of Borders stores
to be closed by the administrators
of the chain's local parent REDgroup.
Administrators announced in
April that 16 Borders stores would
close and a further one had already
been shuttered. The remaining
nine remain trading in the hope of
attracting a buyer.
REDgroup is one of two major
retail administration processes likely to
impact on shopping centre revenues
this calendar year, after the similar
demise of Colorado Group. However
with a sale process underway, these
stores may have a long term future,
unlike the Borders operations which
will simply be axed.
The Borders stores to close on
dates yet to be confirmed are:
Rouse Hill in NSW
Source: Inside Retailing
With more than 1000 stores both in the
UK and across the world, WHSmith is a
staple at travel locations including airports
and railway stations, offering a wide
range of newspapers, magazines, books,
confectionery and drinks for travellers.
WHSmith first opened its doors in Australia
at Melbourne Airport late last year.
The new WHSmith news and convenience
store boasts a diverse range of reading
materials for travellers and locals alike wanting
to keep abreast of the latest news publications
and books or simply wanting a treat while
waiting for arriving passengers or to stock up
for their flight.
FAIRFAX CHANGES IN NSW
The decision by Fairfax to merge Monday
SMH's The Guide, and the Sun-Herald's
program magazine, Television, is most
interesting as now readers can choose
which day they want it or if they want it at all.
Home delivery customers were advised
that they could choose when to receive The
Guide -- on Sunday or on Monday. Whilst
newsagents are apparently being offered
a 15 cents insertion fee they will have to
insert The Guide in some papers and not
others and deliver to selected customers,
thus complicating the delivery process.
Newsagents were left wondering why
they had not been consulted or informed
as this decision will make the delivery
process, already under pressure from
rising costs, more time consuming and
complicated. The potential for complaints
from consumers and subagents if they
miss out on The Guide is an area of concern
Apparently, retailers will receive an
allocation of 25% of The Guide to their total
Monday SMH but may be able to alter their
allocation of The Guide via Connect.
Newsagents in NSW are incensed at the
insensitivity, lack of communication and
total lack of understanding of the delivery
process shown by Fairfax.
At the time of going to press, Fairfax had
requested a meeting with the ANF.
The ANF CEO Alf Maccioni was to meet
with Len Jordan (Director of Circulation
and Network Development), Peter Fray
(Publisher and Editor in Chief of the
SMH) and Robert Whitehead (Director
of Marketing and Newspapers Sales) to
discuss the reasons for the proposed
changes to The Guide , the manner in which
these changes have been managed and the
impact on newsagents.
Maccioni said the common aim was to sell
more newspapers and for both parties to
profit from their endeavours.
A&R FRANCHISEES WANT
TO GO IT ALONE
A legal fight between 25 former Angus
& Robertson franchisees, who sought to
abandon the franchise agreement and go
out on their own, and the administrator of
the collapsed bookseller, REDgroup Retail
appears to have been put on hold.
Administrator, Ferrier Hodgson launched
legal action against the breakaway group
last month, saying it did not have the right
to terminate its franchise agreement.
But the franchisees argued they were no
longer receiving the benefits of the franchise
agreements. They also argued that by not
fully honouring gift cards, the administrators
had hurt their individual stores. The group still
seeks to trade as independent bookstores.
ATO STEPS UP DEBT
The Australian Taxation Office is getting
more serious about chasing the $15 billion
owed by SMEs, with the number of winding-
up orders the ATO has applied for jumping
sharply in recent weeks.
According to insolvency experts, the
number of ATO-driven winding up orders
coming across the desks of administrators
and liquidators has risen from one a month
in 2010 to two or three a week.
It is expected there will be "steady stream"
of winding up orders in the coming months as
the ATO continues its debt recovery efforts.
(Source: Smart Company)
8 National Newsagent May 2011
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