Beaurepaires to shut down 100 Stores as iconic tyre giant's fate hangs by thread
- Replies 16
A staple of the Australian automotive scene, Beaurepaires has been the go-to for tyre services for Australians since its founding in 1922.
With a heritage spanning a century, it has built a reputation as a trusted retailer of quality tyres and auto services.
However, as much as we cherish historic brands and rely on their services, the future can often take a turn for the unpredictable.
Beaurepaires is set to close 100 stores and lay off 700 workers according to reports, casting a shadow of uncertainty over the future of the iconic brand.
This drastic move comes after failed negotiations to sell the company to a rival, leaving the fate of the remaining stores and employees hanging in the balance.
Founded by former Australian Olympic swimmer and later politician, Sir Frank Beaurepaire, Beaurepaires has been a household name.
The company, now owned by Goodyear Dunlop Tyres Australia, a subsidiary of the US-based Goodyear Tire and Rubber Company, has been a stalwart in the Australian tyre industry.
However, the company's future is in doubt as it transitions towards a 'third-party distribution and retail sales model instead of a company-owned approach'.
This shift will see the company exiting nine warehouse locations and selling or leaving about 100 retail and fleet stores.
The overhaul is expected to cost Goodyear Tire and Rubber between AU$84-99 million, but is projected to increase yearly income in Australia and New Zealand by AU$76-84 million.
According to an insider, Goodyear Tire and Rubber Company was in talks to sell Beaurepaires to rival tyre retailer, Bob Jane Corporation.
However, the deal collapsed when Bob Jane Corporation decided to only purchase 'the select few that actually make money'.
The insider also claimed that all remaining Beaurepaires stores would be closed by April, a claim disputed by Lauren Voucatos, the Human Resources Transformation and Communications Lead for Goodyear Dunlop Tyres Australia.
Voucatos stated that while the company had 'begun to evaluate different scenarios for different parts of our business', no final decisions had been made.
‘The proposed plan remains subject to consultation with employee representatives,’ according to an announcement made by Goodyear Tire and Rubber Company to the US Stock Market.
The closure of Beaurepaires stores and the shift to a third-party model will undoubtedly have a significant impact on the Australian tyre industry.
As part of this transition, exclusive distribution rights of both Goodyear and Dunlop tyres will be sold to Australian wholesalers Tyremax and National Tyre and Wheel, respectively.
Tyremax has announced plans to start distribution by April, leaving the future of factories owned by Goodyear Dunlop Tyres Australia uncertain.
The fate of these factories and their employees 'hasn’t been determined' by the company yet, according to Voucatos.
This leaves hundreds of workers in a state of limbo, unsure of their future employment status.
The Beaurepaires saga is a stark reminder of the volatile nature of the retail industry.
It underscores the importance of adaptability and innovation in an ever-changing market landscape.
As the Australian tyre industry grapples with this significant shift, one can only hope that the workers affected by these closures will find new opportunities in this time of change.
What are your thoughts on the closure of Beaurepaires stores? Have you been affected by these changes? Share your experiences and thoughts in the comments below.
With a heritage spanning a century, it has built a reputation as a trusted retailer of quality tyres and auto services.
However, as much as we cherish historic brands and rely on their services, the future can often take a turn for the unpredictable.
Beaurepaires is set to close 100 stores and lay off 700 workers according to reports, casting a shadow of uncertainty over the future of the iconic brand.
This drastic move comes after failed negotiations to sell the company to a rival, leaving the fate of the remaining stores and employees hanging in the balance.
The future of Beaurepaires has been in doubt as the tyre retailer is set to close stores and lay off some of its workers. Image: Yelp
Founded by former Australian Olympic swimmer and later politician, Sir Frank Beaurepaire, Beaurepaires has been a household name.
The company, now owned by Goodyear Dunlop Tyres Australia, a subsidiary of the US-based Goodyear Tire and Rubber Company, has been a stalwart in the Australian tyre industry.
However, the company's future is in doubt as it transitions towards a 'third-party distribution and retail sales model instead of a company-owned approach'.
This shift will see the company exiting nine warehouse locations and selling or leaving about 100 retail and fleet stores.
The overhaul is expected to cost Goodyear Tire and Rubber between AU$84-99 million, but is projected to increase yearly income in Australia and New Zealand by AU$76-84 million.
According to an insider, Goodyear Tire and Rubber Company was in talks to sell Beaurepaires to rival tyre retailer, Bob Jane Corporation.
However, the deal collapsed when Bob Jane Corporation decided to only purchase 'the select few that actually make money'.
The insider also claimed that all remaining Beaurepaires stores would be closed by April, a claim disputed by Lauren Voucatos, the Human Resources Transformation and Communications Lead for Goodyear Dunlop Tyres Australia.
Voucatos stated that while the company had 'begun to evaluate different scenarios for different parts of our business', no final decisions had been made.
‘The proposed plan remains subject to consultation with employee representatives,’ according to an announcement made by Goodyear Tire and Rubber Company to the US Stock Market.
The closure of Beaurepaires stores and the shift to a third-party model will undoubtedly have a significant impact on the Australian tyre industry.
As part of this transition, exclusive distribution rights of both Goodyear and Dunlop tyres will be sold to Australian wholesalers Tyremax and National Tyre and Wheel, respectively.
Tyremax has announced plans to start distribution by April, leaving the future of factories owned by Goodyear Dunlop Tyres Australia uncertain.
The fate of these factories and their employees 'hasn’t been determined' by the company yet, according to Voucatos.
This leaves hundreds of workers in a state of limbo, unsure of their future employment status.
The Beaurepaires saga is a stark reminder of the volatile nature of the retail industry.
It underscores the importance of adaptability and innovation in an ever-changing market landscape.
As the Australian tyre industry grapples with this significant shift, one can only hope that the workers affected by these closures will find new opportunities in this time of change.
What are your thoughts on the closure of Beaurepaires stores? Have you been affected by these changes? Share your experiences and thoughts in the comments below.
.png){kind=icon}
