Massive blow as Specialty announces 317 store closures
THE group behind Katies, Millers and Rivers will close hundreds of stores as another traditional fixture of the nation’s retail scene falls on hard times.
Speciality Fashion Group, whose stable of brands also includes City Chic, Crossroads and Autograph, has announced plans to close more than 300 stores as international competition, online shopping and subdued consumer spending takes its toll.
Chairwoman Anne McDonald said the loss- making retail group would reduce its network from 1019 to 700 stores sometime in 2020. There are about 230 stores in Queensland.
The bulk of the closures will occur next year, Ms McDonald told the group’s general meeting in Sydney yesterday.
Speciality Fashion employs 5000 people and has closed 76 stores over the past three years.
Ms McDonald said the group was taking action to confront “subdued consumer confidence impacting discretionary expenditure and increasing competition, both from international and online retailers”.
Losses at Speciality Fashion blew out to $ 8.39 million during the year to June as it was hit with major writedowns on its decision to close its fleet of City Chic stores in the US.
The loss was more than triple the $ 2.19 million dive into the red the specialty women’s fashion retailer posted during the 2016 financial year.
Shares in the group, which was being eyed for takeover by an investment company controlled by the Qatari royal family earlier in the year, have more than halved over the past 12 months. THE CLUB