Masters Home Improvement turmoil puts Chirnside Park shopping centre development under cloud

THE future of a major shopping centre development in Melbourne’s outer east is now uncertain after the collapse of Masters Home Improvement business.

General, generic photo of the Masters hardwarre store at Portsmith. The troubled Woolworths hardware franchise is looking to sell the warehouse-sized building. PICTURE: BRENDAN RADKE

THE future of a major Chirnside Park development is now uncertain after Woolworths announced an intention to sell or close its Masters Home Improvement business.

On December 22 Yarra Ranges Council approved a planning permit for developer KFT to build a Masters and Dan Murphy’s on the East Ridge site on the corner of Maroondah Highway and Fletcher Rd.

It was hoped the hardware store/liquor shop combo would be up and running by Christmas 2016, employing more than 180 people.

Cr Andrew Witlox, who has strongly supported the development, said he had been in contact with KFT and at this stage plans had not changed.

“As far as they know and as far as I know, nothing has changed for them in the short term,” Cr Witlox said.

“I don’t think Masters will be gone; the developer hasn’t been notified that Masters will pull out.

“A new owner may come on for Masters and pay Woolworths out – I think a new owner will do a better job than Woolworths.”

In a statement last week, Woolworths chairman Gordon Cairns said a recent review of operating performance indicated it would 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 wind-up of the business.”

Woolworths needs to exercise options with Lowes who are part of the joint venture agreement behind Masters before further action can take place.

Mr Cairns said negotiations would take at least two months and the business would continue to trade through this period.

Cr Witlox said if Masters was to pull the pin, the developer would not have to go back to council for another planning permit, provided an appropriate tenant moved into the site.

“The planning permit is for a large commercial warehouse space,” Cr Witlox said.

“The developer said he has already been contacted by interested parties.

“I will say if (council’s) planning department had co-operated with the developer in the first place Masters would have been operating by now and we’d have 180 extra jobs in the community.”

KFT did not return Leader’s calls.