Business
Australia’s Glue Store Closes All Stores and Online Operations After 28 Years
Glue Store permanently closes all stores and online channels after 28 years in business. The closure comes after Accent Group previously announced it would close, convert or dispose of any remaining 16 stores in the chain by the end of FY23. This included $8.4 million in losses at Glue Store (including closure provisions) for the first half of the financial year. The retailer, recently acquired by Accent Group in 2021, remains focused on growth for brands such as Sports Direct, Lacoste and HOKA whilst growing its wider retail portfolio across Australia.
Glue Store has shut all its stores and online presence, marking the end of 28 years as an Australian fashion retailer. The retailer posted a message on its website which read: "After many years of bringing you the styles you love, Glue Store has closed for good, online and in store.” It expressed gratitude to its customers for their years of loyalty and support over the years.
Accent Group Confirmed Closure Earlier This Year
In February, Accent Group warned the ASX that all 16 remaining Glue Store outlets would be closed or sold by the close of the financial year. The company had announced at the time it had decided to shut Glue Store and that the business would be sold or shut down.
Glue Store, which was fully shut for part of the September to March period, booked a loss of $8.4 million in the first half, including closure provisions. The shut down comes after the company announced months earlier that it would be closing the business.
Acquisition of Glue store by Accent group
It was founded in 1988 by Hilton Seskin. Then it was purchased by JD sports fashion in 2021. Accent Group has about 900 stores and owns brands such as The Athlete's Foot, Hype DC, Platypus, Nude Lucy and Style Runner.
Accent Eyes Expansion of Sports Direct
Accent Group said it will continue to chase growth through internationally known brands including Sports Direct and Lacoste.
It is discussing nine comprehensive store locations throughout Australia. It launched the first Sports Direct store that opened at Fountain Gate in Victoria last November, with 50 stores planned over six years. It also launched a flagship Lacoste store in Melbourne last December and plans five more stores this year. There are also three planned HOKA stores, including a flagship Sydney CBD location.
Revenue Rose While Profit Declined
Accent Group revenue of $816.9 million, was up 5% prior year. However, costs were also higher, restricting after-tax profit to $28.1 million down 40%.
Source: Yahoo Finance
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