Woolworths to close or sell out of ailing hardware chain Masters

THE JOBS of up to 9000 Masters employees, many in Victoria, hang in the balance as owners Woolworths consider winding-up the troubled home hardware brand.

A Masters Home Improvement store at an undisclosed location. These stores are owned by Woolworths and are set to open up acro...

THE JOBS of up to 9000 Masters employees, many in Victoria, hang in the balance as owners Woolworths consider winding-up the troubled home hardware brand.

The retail giant this morning said it is looking to either sell or windup the brand after sustaining heavy losses.

Chairman Gordon Cairns says the retailer’s recent review of the business indicates it will take many years for Masters to become profitable.

“We have determined we cannot continue to sustain ongoing losses from this business,” Mr Cairns said.

“We intend to pursue an orderly prospective sale or windup of the business.”

Masters has 63 stores across Australia.

Gerard Dwyer, national secretary of the Shop, Distributive and Allied Employees Association, said Masters staff were worried about today’s announcement of the sale or closure of the business.

He said that 9000 jobs were “uncertain”.

Mr Dwyer said Masters workers who have mortgages, families and school bills to pay were calling the union’s office to find out how much leave they were owed.

“It hasn’t been a good day,” he said.

“The only positive is that Woolworths is such a large employer and with the expansion of other brands that if it does close, a number of staff will be redeployed.”

Mr Dwyer said that an international brand, such as Costco, might take over some of the stores.

“But I couldn’t see them buying all of the sites,” he said.

Mr Dwyer said Masters staff had been “loyal” during difficult times for the troubled hardware retailer.

There was a substantial amount of permanent employees among the 9000-strong workforce.

He said that the union was able to save “every full-time job” when the Franklins supermarket chain closed.

Woolworths said if it has to close any of the operations, it will look to find them jobs within the wider Woolworths Group.

The Masters stores have made $600 million in losses in five years.

Woolworths with partners Lowes have invested more than $3 billion in the rollout.