Nike Franchisee’s Shocking Collapse: Seven Sydney Stores Shut Down Overnight, Leaving 115 Staff Jobless and Customers Fuming
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- Major retail disaster unfolds as one of Nike’s largest Australian franchisees goes into liquidation, forcing immediate closure of seven beloved Sydney stores.
- More than 100 staff members left reeling as they’re suddenly axed, with all employee entitlements to be paid through the Commonwealth government’s Fair Entitlements Guarantee scheme.
- Angry customers Meanwhile, customers are left high and dry as gift certificates and store credits are rendered worthless, sparking outrage across the community.
One of the world’s most iconic brands, Nike, has been rocked by a major crisis Down Under as a key franchisee, AF-1, suddenly went into liquidation, shutting down seven Sydney stores overnight and leaving 115 employees jobless.
The shocking move has sent shockwaves throughout the retail sector, with the entire workforce of AF-1 – which has managed Nike stores in Sydney since 2006 – being terminated with immediate effect.
In a statement, BCR Advisory John Morgan, the newly appointed liquidator, confirmed that the Nike stores ceased trading immediately, with all employees’ roles being terminated.
“Eligible employee entitlements, including unpaid annual leave, wages, and redundancy payments will be paid under the Commonwealth government (Fair Entitlements Guarantee) scheme,” he added.
The liquidator’s office has provided affected employees with information about this scheme and how to apply for compensation from this Commonwealth government funding.
The sudden collapse of AF-1 has also sparked widespread outrage among customers, who will no longer be able to redeem their gift certificates and store credits. According to Mr. Morgan, these represent unsecured claims against the franchisee.
As news of the closures spread, customers took to social media to express their anger and disappointment, with many calling for Nike to take immediate action to address the situation.
The retail consultancy arm of AF-1, which provided training and advice to other retail businesses, has also been wound up as a result of the liquidation.
The stores affected by the closure include locations on Pitt St in the CBD, Bondi, Neutral Bay, Burwood, Chatswood, Warringah, and Castle Hill.
While Nike has yet to comment on the situation, the crisis is likely to have far-reaching implications for the sports apparel giant’s operations in Australia.