Insulation manufacturer Cool or Cosy hopes to re-enter the Western Australian market when economic circumstances improve as it finalises the sale of assets in the state.
The Queensland company said it has sold Cool or Cosy (WA) Pty Ltd, which manufactured insulation and operated an airconditioning business, to an unnamed buyer for an undisclosed sum.
The sale of the WA division affects six employees, however managing director Robert Nicholls said the workers will be transferred to the new owner.
Under the deal, Cool or Cosy will licence its brand to the buyer on a non-exclusive basis for five years and will receive a 3 per cent royalty on sales during the period.
Mr Nicholls said at the end of the period, the licencing agreement will be up for re-negotiations or, should economic conditions improve, the company may decide to re-enter the WA market.
"We haven't closed the door completely on re-entering the WA market if circumstances are appropriate and we see opportunities there," he told WA Business News.
Mr Nicholls added that the company was also looking for other opportunities outside the insulation and hot water system areas.
The company will completely exit its WA operations at the end of February 2010 when the lease at its O'Connor base expires. The company will look to sub-let part of the premise until the end of the lease.
The company expects the full year loss attributable to the discontinued WA operations to be around $600,000.
Mr Nicholls said the company is currently focusing on launching its new solar hot water system in the second half of this calendar year, and then expand the product nationally.
Cool or Cosy has forecast a net loss for the 2009 financial year of $1.1 million, an improvement on the previous corresponding period's net loss of $2.8 million.
