BREAKING: Fashion Giant Glue Store on Brink of Collapse as Parent Company Accent Group Cuts Losses
- Fashion chain Glue Store to shut or sell all 16 remaining stores by July amid financial crisis
- Accent Group posts $8.4m six-month loss, but revenue increases 5.3% to $816.9m
- Glue Store’s demise comes as Accent Group expands other brands, including Sports Direct, Athlete’s Foot, and Hype DC
- Uncertainty surrounds job losses as 21 stores shut, with 40 more set to open in coming months
The once-thriving fashion chain Glue Store is on the verge of collapse, with its parent company Accent Group announcing plans to shut or sell all 16 remaining stores by July. The news comes as Accent Group posted a $8.4m six-month loss, despite a 5.3% increase in revenue to $816.9m.
Glue Store, which first opened in Melbourne in 1999, has struggled to stay afloat in recent years, with 17 stores already closed in mid-2024. The chain, which stocks leading brands including Adidas, Nike, and Levi’s, has been unable to compete with the rise of online shopping and changing consumer habits.
Accent Group, which operates a range of brands including Athlete’s Foot, Platypus, and Hype DC, as well as Ugg, Skechers, and Vans, has been navigating a challenging retail environment since the Black Friday and Christmas trading periods. The group has responded by expanding its other brands, including the launch of Sports Direct in Melbourne in November.
Despite the closure of 21 Glue Store and Vans stores this financial year, Accent Group has opened 27 new stores since July 2025, with 40 more set to open in the coming months. The company’s wholesale sales have grown 9.4% in the first half of this financial year, driven by Hoka and Ugg.
Analysis: What This Means for Australia
The collapse of Glue Store has significant implications for Australia’s retail landscape. The closure of 16 stores will not only result in job losses but also leave a gap in the market for fashion-conscious consumers. The expansion of Accent Group’s other brands, however, is a positive sign for the economy, with the creation of new jobs and opportunities.
Security analysts say the closure of Glue Store highlights the need for retailers to adapt to changing consumer habits and invest in online platforms. “The rise of online shopping has changed the game for traditional brick-and-mortar stores,” said one analyst. “Retailers need to be agile and innovative to stay ahead of the curve.”
Industry observers believe the closure of Glue Store is a sign of the times, with many retailers struggling to stay afloat in a competitive market. “The retail landscape is constantly evolving, and companies need to be prepared to make tough decisions to stay ahead,” said another expert.
As Accent Group moves forward with its growth plan, shareholders are likely to be rewarded with a 3.25c per share interim dividend. However, the uncertainty surrounding job losses at Glue Store and the seven other stores earmarked for closure remains a concern.