Liquidators study Dymocks books

The closure of Wellington's Dymocks bookstore is probably a result of fierce competition on Lambton Quay, an industry leader says.

Award-winning Dymocks was placed in liquidation on Monday and a notice on the doors yesterday said the franchise store would remain shut until further notice.

Liquidator Andrew Brady said four full-time jobs and about 12 mostly casual and part-time ones were lost in the closure.

Chandler Beck Books, the company owned by franchisees Bruce and Janis Caddy, was told of the liquidation on Monday and staff learned their jobs were gone that night.

"We're doing a stocktake and trying to ascertain the value of assets," said Mr Brady. The liquidators will disclose the level of debt on Friday.

The eight other Dymocks stores of which five have opened in the past 18 months were not affected. Vouchers bought at the Wellington shop could be used at any of the others. The closest is in the Queensgate Mall in Lower Hutt.

Booksellers New Zealand chief executive Lincoln Gould said the closure was unfortunate but he did not believe it was reflective of the industry.

"The feedback is that booksellers are generally holding their own. Some areas are continuing to grow, particularly in children's books," he said.

"With Dymocks' situation, it could well be that competition is fierce in Lambton Quay."

Dymocks Wellington was the runner-up in last year's Group Bookshop of the Year Award, and had won the category six times since 2000.

Mr Gould said the store's winning results meant it was regarded as a "good bookshop amongst peers"and showed how "highly regarded it was within the trade".

Dymocks chief executive Don Grover said the closure of the Lambton Quay store was "obviously unfortunate" and another central Wellington location was being sought.

"We have supported Lambton Quay franchisees Bruce and Janis Caddy in an evolving competitive market and obviously this is a difficult time for them."

The Caddys, who did not comment to The Dominion Post, will not be involved in a new Wellington store.

Dymocks' head office in New Zealand closed earlier this month. The franchises are now run from Australia.

- © Fairfax NZ News

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