Nike has shut down seven stores in Sydney with more than 100 staff members losing their jobs.
Retail business AF-1, which managed all seven stores including prominent shopfronts on Pitt Street and in Bondi and Chatswood, has entered liquidation.
Trading has ceased at all seven stores and all 113 staff members have been terminated, BCR Advisory liquidator John Morgan said.
The retail giant has confirmed it has ended all agreements with AF-1, which also offered business management and retail consultancy services.
Affected staff will be able to apply to the government for unpaid entitlements, Mr Morgan told the Australian Business Network.
‘Eligible employee entitlements, including unpaid annual leave, wages and redundancy payments will be paid under the Commonwealth government [Fair Entitlements Guarantee] scheme,’ he said.
‘The liquidator’s office has provided affected employees with information about this scheme and how to apply for compensation from this Commonwealth government funding.’
He added the liquidator’s office was working with landlords to manage the closure of stores and with Nike about the possible return of goods.
Seven Nike stores across Sydney will shut down following a liquidation (stock)
More than 100 staff have been terminated in the widespread closures
Gift certificates and store credits will no longer be redeemable at the stores though other Nike stores will continue to operate.
It comes amid a wave of retail closures in recent months, with a number of businesses questioning the need for costly brick-and-mortar stores.
Country Road was among the most prominent brands to join the trend, having recently announced the closure of two of its most prominent Sydney stores.
It has since announced it will open ten new or refurbished stores by year’s end – unlike retailer Jeanswest which in March announced the closure of all its storefronts.
KMD Brands, owner of Rip Curl and Kathmandu, announced earlier this month it would shut at least 21 stores and invest in its digital presence to boost profits.
More to come.
