The accessories retailer announced the closure of 33 stores across Australia and New Zealand last month after calling in the administrators, and now it has closed the remainder of its stores.
While the previous closures were part of the process to prepare the 105-store business for sale, this round of closures is all due to the coronavirus.
The recently appointed voluntary administrators, Deloitte Restructuring Services partners Vaughan Strawbridge, Sam Marsden and Jason Tracy, advised staff last week that trading at all stores would cease from close of business on Thursday 26 March 2020.
“Until today, we have been able to effectively manage shopfront operations in what is a rapidly changing public health and trading environment,” administrator Vaughan Strawbridge says.
“But the reality is that COVID-19 presents a health risk in a retail environment, and without being able to guarantee a safe environment for store employees, and with their health a priority, we have had to make this decision to cease trading across the 93 store network in Australia.”
The closures will affect approximately 210 permanent staff, plus casuals. Stores in in New Zealand have already closed after its government implemented a stage 4 lockdown.
“These are extraordinary times, and there is also no certainty that many retail operators in Australia will be able to continue trading amidst so much uncertainty and with public health measures changing so frequently,” Strawbridge says.
Employees are being stood down with access to certain leave entitlements and every support possible to ensure they can access relevant government support services.
Online sales and order deliveries are not affected.
“Until today, we had been able to trade the business but due to the continued heightened risk to our staff we have had to make this unfortunate decision.
“We hope to re-open the bricks and mortar business when this unprecedented public health threat has passed, but when that will be, we cannot be certain at this time.”
