Tough times claim another Toowoomba business
MARKET saturation and a tough economic climate has forced the closure of a well-known Toowoomba business.
CJR managers spent most of today meeting with staff informing them of the imminent closure of a branch in the business.
Manager Ian Grambower said the CJR would be "exiting the plumbing supplies business" but the sheet metal workshop would continue trading.
It effectively cuts about 12 staff from the current roster of 25 workers, Mr Grambower said.
"Primarily it's a tough business market and it's an extremely competitive market in plumbing supplies," he said.
"The business has been operating for 30-plus years and historically has been a good performer but up to the last 10 years, it has gotten tougher and tougher."
Mr Grambower said all creditors would be paid and staff that lost their jobs would be paid their entitlements.
He was adamant it was not a liquidation but a difficult decision made to ensure the business could move forward in some capacity.
"It's a very difficult situation here with the staff and it is not down to any of them as to why we're in the situation we're at now," he said.
"This is a decision that everyone has agonised over and it is not something that the employees should feel is their fault.
"They have all worked bloody hard but it's a tough market environment."
Mr Grambower said management would work to restructure the sheet metal workshop aspect of CJR in an effort to absorb some workers whose jobs were on the line.
He said future developments could see the business expand but ruled out re-entering the plumbing supply trade.
"I would doubt we would move back into the plumbing market," he said.
"The workshop is a really strong performing part of the business.
"We're scaling back a little now but we expect (the sheet metal workshop) to be a strong piece of the business."
Staff were informed at a meeting held this morning of the business changes, some of which had worked at CJR for more than 20 years.