Famous shop to close after 60 years

Managers of the store's parent company this week announced that all Elco shops would either be closed or re-branded by the beginning of next year.

Jonty Ormistron, East London regional manager, said the Elco Interiors store at The Hub in Beacon Bay would be closing its doors on 1 August.

He said a massive clearance sale would kick off from Thursday, 18 June, at the store, which opened just over a year ago in May 2008.

“Sadly, this move comes as part of the decision taken to further consolidate within the holding company, Sen Ad, and to concentrate on our core business in the Eastern Cape, Mpumalanga and KwaZulu-Natal under the Furniture Appliance Warehouse banner.”

The announcement comes just months after the closure of the Vincent Elco, which shut down in March, and heralds the end of an era for the Eastern Cape wholesale business.

Ormistron said Elco at the Mthatha Plaza had also closed in April, while the Fleet Street branch in East London and the Pier 14 branch in Port Elizabeth would be re-branded as Furniture Appliance Warehouse (FAW) stores by early next year.

“Customers who have purchased goods from Elco which are still under warranty will be able to take their goods to the Fleet Street branch to have their warranties honoured.”

Ormistron said FAW stores had also been consolidated, downsizing from 32 stores, including warehouses, to 24, with the company being forced to retrench around 120 people.

He said Elco Interiors staff would not be affected and would be absorbed into the Fleet Street branch and local head-office.

Ormistron said it was unlikely that the FAW stores would continue to carry the high-end products currently carried by Elco Interiors.

“The problem is that the furniture and appliance industry has been hit hard by the global financial crisis, mirroring what is happening in the automotive industry at the moment, with sales figures down by 32% compared to last year,” he said.

Former owner of Elco Sid Gasson said he was very sad to hear the stores would be closing.

“I bought Elco, which was then trading in Buffalo Street, from the Jenkelsons in 1984 and the next year we had a terrible fire, which led me to relocate the store to the Gasson Centre.”

Gasson said he had expanded the business to Vincent in 1994, and had continued trading until 2004, when he had sold the business to Sen Ad, trading as Furniture Appliance Warehouse.

“It is really sad that the Elco brand, with its rich history, will no longer be trading,” he said.

Beverley Calden, who has worked for Elco for 21 years, said the announcement had saddened her. “It is hard knowing that something that you have been a part of for so long will no longer exist.”

Cynthia Paulin, who has also worked at Elco for over 16 years, was also saddened.

“This company has such a vibrant history, it has been a part of East London for so long.”

Border-Kei Chamber of Business executive director Les Holbrook said the announcement was a sad day for what had once been a strong, family run business in the Eastern Cape.

“The question one has to ask though, was whether the store was offering the right quality, service and price for the market,” he said.

Source: Display Dispatch

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