PHOTO: HIBBETT
Sydney’s retail sector has been hit with another major blow as Nike franchisee AF-1 collapses into liquidation, forcing the closure of seven prominent stores and leaving more than 100 employees without jobs.
🏬 Stores Affected Across Sydney
The shutdown impacts some of Sydney’s busiest retail strips, including:
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Pitt Street
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Bondi
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Chatswood
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Neutral Bay
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Burwood
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Warringah
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Castle Hill
All 113 staff members employed by AF-1 have been terminated, liquidator John Morgan of BCR Advisory confirmed.
💔 A Franchisee with History
AF-1, which had operated Nike stores in Sydney since 2006, described itself as the city’s “premier Nike Retail Partner.” Alongside retail operations, the business also offered management and consultancy services.
But now, Nike has confirmed it has terminated all agreements with the franchisee, signalling a complete end to the partnership.
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⚖️ What Happens to Staff?
The liquidator reassured staff that unpaid wages, leave and redundancy payments would be covered under the Commonwealth government’s Fair Entitlements Guarantee (FEG) scheme.
“Eligible employee entitlements, including unpaid annual leave, wages and redundancy payments will be paid,” Morgan told the Australian Business Network.
Employees have been provided with details on how to apply for compensation through the government scheme.
Nike has shut down seven stores in Sydney with more than 100 staff members losing their jobs (pictured is the Nike in Chatswood)
🎟️ What About Customers?
Shoppers holding gift certificates or store credits are out of luck—these will no longer be redeemable at closed stores. However, 11 other Nike-operated stores across Sydney remain unaffected and continue trading.
📉 The Bigger Picture: Retail in Crisis
The closures reflect a broader trend sweeping across Australian retail. Many big-name brands are reassessing their brick-and-mortar footprint amid:
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Soaring commercial rents
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Rising wages
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Higher operating costs
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Thinner profit margins
Fashion giant Country Road has already shut two of its flagship Sydney stores, though it has committed to opening ten new or refurbished outlets by year’s end. Meanwhile, Jeanswest pulled the plug on all physical storefronts earlier this year.
The Nike franchise collapse underscores just how tough trading conditions have become—even for globally recognised brands.
SOURCE: THE DAILY MAIL