More than 200 jobs in Hume and Whittlesea could be axed in the wake of the scrapping of Masters stores by Woolworths.
Losses topping $600 million over the past four years, with no sign of a profit on the horizon, spurred the supermarket giant to its decision to either sell or close its home improvement outlets.
A Woolworths spokeswoman said there were more than 100 employees at each of the Coolaroo and South Morang stores.
Woolworths chairman Gordon Cairns said the decision means the company could focus on strengthening its core businesses of food, liquor and general merchandise.
“While we will endeavour to move quickly, this process will take several months and the [Masters] business will continue to trade normally through this period,” he said.
“Our recent review of our operating performance 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 Woolworths could not foresee its chain of 63 Masters stores turning a profit in the foreseeable future, and it couldn’t sustain the losses of more than $200 million a year it was incurring.
He said American home improvement giant Lowe’s told Woolworths that the introduction of its joint venture, Masters, was “too aggressive” and that it opened too many stores without first finding a successful format.
“Woolworths’ top priority is to do the right thing by our employees, suppliers, customers and shareholders, and we will act quickly and openly to minimise the impact of this decision,” Mr Cairns said.
“If Woolworths is unable to sell all of the business and has to close any of the operations, it will seek to provide alternative employment opportunities within the Woolworths Group.”
Woolworths will honour all gift certificates, product warranties, returns, and lay‐bys and the completion of any contracted home improvement projects such as kitchens, bathrooms and floor coverings.
Any gift cards can already be used at other Woolworths Group stores.
