Brand owner, Pepkor has confirmed that Timbercity will be shutting down its franchise side after more than four decades.
“The Building Company intends to invest further in the Timbercity brand and the scope of its operations and has therefore decided to move away from the franchise-model to that of wholly owned businesses supporting its growth strategy,” Pepkor said in an interview this week.
The JSE-listed company’s Building Company division (which also holds Tiletoria and Buco) has been due to be sold. That deal fell through in August when would-be buyer Cashbuild walked away after the Competition Commission’s announcement in May that it would recommend the acquisition be blocked.
Of out all 41 Timbercity stores, 21 are owned by franchisees. Some – not all – of these franchise stores may be able to retain the brand, if their owners agree to sell.
“The Building Company has commenced a process to engage with each franchisee to discuss future prospects, including the potential of acquiring select franchise stores,” said Pepkor.
Until earlier this year, Timbercity offered help to independent board and timber shops to convert to franchises at no brand conversion cost, while they would get access to its “top-of-mind brand awareness”.
Sources: Business Insider
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