Woolworths has today reached agreement with Hills Limited to end its licensing contract three years early, ending its deal to distribute clothesline and garden products.

The decision follows on from Woolies exit from its home improvement business.

The supermarket conglomerate will pay an undisclosed sum equivalent to three years’ worth of licence fee income and cash receipts in order to get out of a seven-year deal it signed less than two years ago.

Woolies will also pay an amount to Hills in settlement of all obligations under the licensing agreement.

“Hills is considering potential permanent replacement brand licensing arrangements for all HHL products, and is commencing discussions with interested third parties,” Hills said in a statement on Tuesday.

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