Beaurepaires to close 100 stores and lay off 700 workers as the future of Australia's oldest tire retailer remains in doubt
- Beaurepaires will close 100 stores
- About 700 employees have to be laid off
The future of Beaurepaires is in doubt as Australia's oldest and largest tire retailer is set to close 100 stores and lay off 700 employees.
The huge change comes after plans to sell Beaurepaires to a rival failed.
Beaurepaires was founded in Melbourne over 100 years ago in 1922 by Sir Frank Beaurepaire.
The company is now owned by Goodyear Dunlop Tires Australia, a subsidiary of the US-based Goodyear Tire and Rubber Company.
The company announced on the US stock market in September that its stores in Australia and New Zealand would be renovated by the end of 2024 to make them more profitable.
The future of Beaurepaires is in doubt as Australia's oldest and largest tire retailer is set to close 100 stores and lay off 700 employees.
The move is part of the Australian subsidiary's transition to a “third-party distribution and retail model rather than a corporate-owned approach.”
The company explained that about 700 jobs were in the line of fire, while it also planned to exit nine warehouse locations and sell or exit about 100 stores and fleet stores.
It will cost Goodyear Tire and Rubber Company between AU$84-99 million to complete the overhaul, but it is expected to increase annual income in Australia and New Zealand by AU$76-84 million.
An insider, who wishes to remain anonymous, said this News.com.au that Goodyear Tire and Rubber Company was in talks to sell Beaurepaires to rival tire retailer Bob Jane Corporation.
Talks about buying the entire chain collapsed when the Bob Jane Corporation opted to buy only “the select few that actually make money,” the insider said.
They also claimed that all remaining Beaurepaires stores will be closed in April.
A company insider said hundreds of jobs and stores will be cut in April after talks over a takeover by rival Bob Jane Corporation collapsed (pictured, Beaurepaire employee)
However, this was disputed by Lauren Voucatos, head of HR transformation and communications at Goodyear Dunlop Tires Australia.
Ms Voucatos told the publication that while the company had “started evaluating different scenarios for different parts of our business”, it had not yet made any final decisions.
In its announcement to the US stock market, Goodyear Tire and Rubber Company said that “the proposed plan remains subject to consultation with employee representatives.”
More to come