Dubbo's hopes of receiving a Masters Home Improvement store have been dashed, with Woolworths Limited (Woolworths) pulling the pin on the business.
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Woolworths on Monday announced plans to exit Hydrox Holdings Pty Ltd, the joint venture with US based Lowe's Companies Inc (Lowe's) responsible for 63 Masters Home Improvement stores and the Home Timber & Hardware chain.
Woolworths will endeavour to sell the business, but is likely to close operations if a buyer can not be found.
Dubbo had been slated to receive a Masters Home Improvement store, with Dubbo City Council approving a Cobra Street site for the $12.4 million development in February 2014.
Deputy mayor Ben Shields said it was a huge blow for Dubbo.
"It's a shame that they've pulled the pin and it's bad for Dubbo, because the more retailers we can have in Dubbo the more people end up coming to Dubbo to do their shopping," Mr Shields said.
"Obviously there's not a thing council can do. We can't stop a national trend."
Mr Shields said finding a buyer for the business would be "a miracle".
"A private investor could come and buy Masters and decide to continue the expansion but you've got to be realistic," he said.
In a statement, Woolworths Limited chairman Gordon Cairns said the process is expected to take several months, with businesses continuing to trade normally in the meantime.
"Our recent review of our operating performance indicates it will take many years for Masters to become profitable," Mr Cairns said.
"We have determined we cannot continue to sustain ongoing losses from this business.
"This important decision allows Woolworths to focus its energy and resources on strengthening and executing its plans in its core businesses."