Bunnings to close seven New Zealand stores, 145 employees affected

National retailer Bunnings is proposing to close stores in Ashburton, Hornby, Hastings, Cambridge, Rangiora, Te Awamutu and Putaruru with 145 affected employees.

The Australian-based company today released a statement saying that after a review of the network and “the challenges of the recent business environment,” it has informed staff of its proposal to close the stores.

Jacqui Coombes, Head of Bunnings, New Zealand, said: “Our top priority is the well-being of the 145 affected team members.

“This news is understandably disturbing and we will work closely with our team during the consultation period to discuss your individual circumstances, including redeployment to other stores if possible.

“Despite the incredible efforts of our teams, the challenges in these stores have been exacerbated as a result of the Covid-19 environment and unfortunately these stores are no longer a viable part of our store network.”

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The Ashburton Warehouse, Hornby and Hastings shopping centers and four smaller format stores in Cambridge, Rangiora, Te Awamutu and Putaruru are affected.

“Bunnings is an active portfolio manager in the Australian and New Zealand markets, which includes new developments and openings, as well as reviews like this that have led to the decisions that have been made,” he said.

The closings were related to the challenges of the recent business environment, but also took into account other considerations, including lease agreements, individual store performance, and location suitability, and some of the stores always purported to be temporary locations, said.

“This also follows a review late last year that saw Bunnings close three of its smaller-format stores in Te Aroha, Waikanae and Paeroa.”

Consultation on closings with staff would begin today.

The proposed closings follow previous steps to reduce tension from New Zealand’s closure last month by temporarily reducing hours of salaried staff and paying 20 percent and working with landlords on rent reductions, Coombes said.