Hobart hardware store K&D Warehouse to close to make way for student accommodation

A business started in Tasmania 118 years ago will soon close with a big clearance sale to make way for a University of Tasmania development.

AN ICONIC Tasmanian business will close its doors in coming weeks after 118 years of trading.

The University of Tasmania last year purchased the 1.3 ha K&D Warehouse site on Melville St for $30 million for student accommodation.

The company has revealed UTAS had exercised its option to cancel the hardware store’s lease and bring forward the development of the Hobart CBD site.

In a statement on Monday afternoon, K&D chairman Greg Goodman said a closing down sale would begin this Friday, with price reductions starting at 20 per cent to 80 per cent.

“While Hobart will surely miss K&D, the board of directors are delighted the University of Tasmania will deliver a generational change and economic windfall to the city over many years to come,’’ he said.

“The past 18 months have been great for K&D and in many respects, I feel we are going out on top.”

K&D hardware store in Hobart. Picture: MATHEW FARRELL

Mr Goodman also paid tribute to long-serving employees.

“Some of our staff at Hobart have been with the business for more than 40 years and I take this opportunity to pay tribute to them and thank them publicly for their unstinting dedication,’’ he said.

Mr Goodman said the company expects to return a further $8 per share to shareholders post liquidation.

“Finally, on behalf of the board and management I want to personally thank each and every one of our shareholders for their investment in K&D and a huge thank you to our loyal customers for allowing us to serve you for so long,’’ he said.

K&D has been running hardware operations since Andrew Kemp and Victor Denning established a small timber merchant business in Hobart in 1902.

Mr Denning retired in 1917 from the partnership and the Kemp family became the cornerstone shareholders of the enterprise to this day.

K&D hardware store in Hobart. Picture: MATHEW FARRELL

In 1963, K&D became an unlisted public company with more than 50 shareholders.

At its peak, K&D employed almost 300 Tasmanians, operating four hardware warehouses and give trade outlets.

“There’s not many businesses in Australia let alone globally that can boast a 118-year existence and one only has to glance at the ASX 25 years ago to see how many businesses have fallen by the way side,’’ Mr Goodman said.

“K&D has been a strong contributor to the local economy for many years and the Kemp family in particular should be acknowledged for their unwavering generosity and support.

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“The company has also donated to a variety of causes over a very long period of time.”

Mr Goodman said a closing date had not yet been set and would depend on the sale of stock.

A UTAS spokeswoman said the university was undertaking a master planning phase for its southern campus in the Hobart CBD, which will determine what various sites, including K&D, are used for.

“When the K&D site becomes available, we will start detailed planning and feasibility studies such as geotechnical and heritage investigations,’’ he said.

“While these investigations are conducted, the university intends to allow continued carparking on the K&D site, and will consider options for activating the empty building spaces.”

Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said K&D’s imminent closure marked the end of an era.

“It’s always sad to see such a historical business disappear from the landscape of the city,’’ he said. “But this is business and the changing face of retail right across Australia at the moment.”

But Mr Bailey said the university’s growing presence in the CBD, including student accommodation, created new opportunities for retailers.

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