Struggling shoe retailer to close most remaining stores
Derek Rose |
A shoe retailer that’s been in business for 134 years will close more than half of its brick-and-mortar outlets after running into financial trouble.
Betts, which operated nearly 220 shoe shops at its peak, will close 20 of its 35 stores across Australia, after going into voluntary administration.
The remaining 15 stores are expected to keep operating, including flagship shops in Sydney, Melbourne and Perth.
Betts had already been gradually closing outlets in recent years, reflecting a shift to online shopping and in response to declining foot traffic.
But the retailer had to accelerate those plans following the recent slump in consumer sentiment, coupled with higher fuel prices and rising business costs, administrator Lindsay Bainbridge of Pitcher Partners Melbourne said.
“Australians grew up with Betts shoes; they know and love the brand, and we believe it has a strong outlook as a more streamlined operation,” he said on Thursday.
But the tough retail climate and falling foot traffic in a lot of centres were just not sustainable for the business.
“We will close some stores, focus on strengthening others, and continue the company’s plans to expand retail online,” Mr Bainbridge said.
The stores marked for closure will begin with heavy discounts starting at 50 per cent across the full range of women’s shoes, bags and accessories.
Upwards of 120,000 pairs of shoes, bags and accessories will go on sale, Mr Bainbridge said.
All three South Australian stores will close, as will the Betts outlet in Darwin, and seven of 11 stores in Western Australia.
Four stores will close in NSW, four in Victoria and one in Queensland.
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AAP