Indie store update
K&D store closures
The closure of K&D's Devonport was not a total surprise to the local mayor
The closure of K&D's Devonport was not a total surprise to the local mayor
 
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Kemp & Denning has decided to shut down its warehouse stores in Glenorchy and Devonport
HNN Sources
Tasmania's Kemp and Denning (K&D) has announced it will close its Devonport and Glenorchy locations.

According to a report in The Advocate, a trade customer of the Devonport store said he received an email from K&D Warehouse chief executive Nick Fazzolari saying the branch would close on March 3. The email said despite its best efforts, K&D could not make its Devonport outlet viable.

K&D confirmed the three other businesses in the state's south were not affected and operating as normal. The email also said the company's financial position remained strong and the affected staff would receive full entitlements and additional assistance as well.

Devonport Chamber of Commerce and Industry president Stacey Sheehan said the closure of K&D was devastating for workers but was optimistic for the future of the North-West. She said:
There does appear to be a lot of positive sentiment about the local economy. People are hiring and hopefully this has not come as a complete shock, because I know a lot of people have been looking at it and questioning whether it would stay open or not.

To Ms Sheehan, the closure of the store was not unexpected. She said:
There is a lot of choice for hardware on the North-West Coast and obviously what they were providing was not meeting with what the market wanted.

Devonport Mayor Steve Martin said his sympathies were with the K&D workers that were out of a job.
I do think this is specific to K&D having to close when it pretty much has a large portion of the hardware market in Devonport perhaps the business model is wrong.

It's believed a development application for K&D to extend it's nursery area at the homemaker centre had been lodged with the council recently and was in the process of being assessed.

However, instead of an expansion plan K&D staff, shareholders and trade customers were informed of the Devonport store's closure.

The closure of K&D's Devonport store and loss of almost 40 jobs was a blow to the city. Mr Martin said:
Yes it is a blow because we don't like anybody losing their jobs in our city.

However, it also created the opportunity for Bunnings or another large retailer of bulky goods to move into the vacant hardware site, he said.
Sale of Glenorchy site

K&D chairman Greg Goodman said the Glenorchy store was closing because the building, on Derwent Park Road, had been sold.

Jackson Motor Company managing director and entrepreneur Errol Stewart has confirmed his company purchased the K&D building late last year.

Mr Stewart said his company bought the store just before Christmas for close to $6 million. He said he had not yet decided what the site would be used for, but that it was possible he would expand the nearby motor company or install a tenant.

Mr Stewart - whose latest projects include a $16 million hotel development on a prime Tamar River site - said the K&D store was in a "strategically great location". He expected jobs to be created at the site after K&D's closure.

K&D opened its first warehouse store in Hobart in 1986. The Glenorchy store opened in 1996, followed by Cambridge in 2008 and Devonport in 2013.

Related:
Indie store update: Kemp & Denning exits Mitre 10 - HNN
K&D continues to trade, remains unsold - HNN

Sources:
About 40 jobs to go as K&D sells Glenorchy store building - The Mercury
Devonport business to close doors - The Advocate
Jackson Motor Company buys Derwent Park K&D store - The Mercury
HNN Sources


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