Shocking Closure of Nike Stores in Sydney Leaves Over 100 Jobs Lost Overnight

Network of Nike Stores Abruptly Shuts Down

A network of Nike stores in Sydney has been abruptly closed, resulting in the termination of more than 100 jobs. The franchisee, AF-1, managed stores in key locations including Sydney's CBD, Bondi, Burwood, Neutral Bay, Warringah, Castle Hill, and Chatswood.

Liquidation Process Underway

John Morgan from BCR Advisory has been appointed to lead the liquidation process. Notices posted on shop fronts confirm that all operations have ceased, and the business is being wound up. This has left 113 workers without employment, with their entitlements such as unpaid wages, annual leave, and redundancy payments to be covered by the Commonwealth Government's Fair Entitlements Guarantee scheme. Affected employees have been provided with information on how to apply for compensation.

Impact on Customers and Operations

Unfortunately, gift certificates and store credits will not be honored, as they are considered unsecured claims against the franchisee. The liquidator is working with Nike and landlords to manage an orderly shutdown and return goods to Nike as per supply agreements. Communication is being sent to employees and trade creditors to lodge their claims.

Nike's Response and Broader Retail Challenges

A spokesperson for Nike stated that agreements with AF-1 ended "effective immediately," expressing appreciation for the partnership and a commitment to serving consumers through other channels like Nike stores, multibrand retailers, and nike.com. This closure occurs during a tough period for Australian retail, with other major brands like Mosaic (including Noni B, Millers, Katies, and Rivers), Jeanswest, and Ally Fashion also facing collapses.