John Cootes furniture to close down

BLAXLAND_D902R_BLK_Lifestyle_02Furniture retailer John Cootes will shut down its network of 12 stores by the end of the year, affecting 135 employees across NSW and ACT and spelling an end to the 35-year-old business.

The retailer has been adversely affected by subdued retail activity and a significant increase in competition from national furniture retailing groups in the past two years.

Owner of John Cootes furniture, Elanor Investors Group, committed to delivering full employee entitlements, redundancy payments and an ex gratia payment to 90 full-time and 45 part-time and casual employees.

“Elanor acquired John Cootes Furniture in 2014. Since that time the number of stores was expanded from three stores to 12,” Elanor CEO Glenn Willis said.

“The significant increase in the competitive environment, combined with softer retail market conditions, has resulted in our decision to close the business. We have endeavoured to sell the business to avoid a closure, but no firm proposals have been received to date.”

The Elanor-owned Ashley Furniture Homestores business will also be sold as a going concern, though it will continue to trade for the time being.

The 12 stores will be closed progressively, other than the Merrylands store, which is expected to be closed by early October.

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