Hills Limited and Woolworths have decided to end the contract which they had signed on 3rd December 2014 which licensed certain Hills Home Living(HLL)brands to Woolworths for a period of 7 years. This is followed by Woolworths recent decision to exit its Home improvement Business. In fact, Woolworths has to pay an amount to Hills in settlement of all rights and obligations under the Licensing Agreement. The terms of settlement still remain confidential between the parties, Woolworths has to bring forward 3 years’ worth of license and cash in its results for the first half of FY17.
The iconic HHL brands will continue as usual with its products remaining available through retail outlets and installers in Australia and New Zealand. However, Hills is considering potential replacement brand licensing arrangements for all HHL products, and is commencing discussions with interested third parties. All of the Masters outlets will be shut down by mid-December. Woolworths has also mentioned its willingness to sell its Home Timber and Hardware stores.