Haywrights sells two Auckland stores

Press, 18 December 1978, Page 24

Haywrights sells two Auckland stores

Haywrights Ltd, has sold two of its major Auckland suburban stores and is negotiating to dispose of four others.

The Glenfield store has been sold to the Farmers’ Trading Company, Ltd, and the New Lynn branch to Rendells, Ltd. Staff at these stores, plus seven other branches, were notified by the Haywrights management on Friday.

But there are no takers in sight for the company’s downtown “flagship.” The moves will end months of speculation about Haywrights’ future in Auckland, which has been uncertain for some time.

The company’s managing director (Mr G. Lawn) said that discussions were still being held with a number of Auckland retailers for the

sale of branches at Panmure, Remuera, Henderson, and Hamilton. “All stores will be sold on a going-concern-basis,” he said. “Staff positions will be safeguarded except in those cases where circumstances of the new owner may require some re-arrangement.” In this event, appropriate redundancy arrangements had been made.

Haywrights has already closed its Takapuna and Mangere branches; the building it occupied at the Mangere town centre has been sold, and the company discharged from its lease obligation.

The Auckland Building Centre is to take over the second floor of the Downtown store, leaving Haywrights two floors. The furnishing and some

other departments now oper-i ated on the second floor will be discontinued. However, these moves will not be made before July next year. Haywrights will continue to operate these stores until March 2 next year, or until! an alternative date Mr Lawn said it was not possible to be precise about the future, although these moves were all that was now contemplated. Much would depend on future trading patterns and the economy. “The stores are now trading well, but obviously the board must keep its options open,” Mr Lawn said. “Should we be approached to sell any store, we would have to consider it and make a decision in the light of current circumstances.” Earlier this year the com-

pany scaled down its St . Lukes stores (Mt Albert) by , transferring 2800 sq. m to : Foodtown. Mr Lawn says the Downtown store had been a major problem, which had made a 11 significant contribution to the company’s declining : profits. The stores at St Lukes, > Manukau City and Rotorua > will continue to operate as i Haywrights in the meantime. >i The company chairman j | (Mr R. R. Trotter) thus addressed the problem of - Auckland stores in his rej port to shareholders last s month — “the Auckland . market is the most difficult i area in which we operate, i and in spite of strong ef--1 forts, we were unable to t achieve a penetration sufficient to match the costs of - operation.”