113 workers thought it was just another shift…then THIS retail giant collapsed

When staff turned up for their shifts at Nike stores across Sydney, few expected it would be their last day.

By the evening, more than a hundred workers had been told their jobs were gone.

Six busy stores shut their doors without warning, leaving employees and customers stunned.

Liquidation and Store Closures

The closures followed the collapse of AF-1 and its related companies, which had operated Nike outlets across Sydney’s east and west.

The businesses went into liquidation on 26 September, with John Morgan of BCR Advisory appointed to oversee the process.

Bondi Junction, Burwood, Castle Hill, Neutral Bay, Sydney CBD, and Warringah were among the affected locations.

These stores stopped trading immediately, taking many shoppers by surprise as they discovered their local outlets closed for good.

Impact on Employees and FEG Support

Other Nike outlets in Sydney not linked to AF-1 remained open, so the brand itself was not disappearing entirely from the city.

For the 113 full-time and casual staff suddenly unemployed, the Fair Entitlements Guarantee (FEG) scheme offered a lifeline.

FEG is a discretionary government program that provides financial assistance for unpaid entitlements when a business collapses.

Limits and Exclusions of FEG

The scheme covers items such as wages, annual leave, and redundancy payments, though limits apply.

Workers may claim up to 13 weeks of unpaid wages, capped at $2,850 gross per week.

However, unpaid superannuation was excluded, leaving staff to chase any missing contributions directly through the Australian Taxation Office.

Shoppers holding gift cards also lost out, with the liquidator confirming that credits and vouchers could not be honoured.

Gift cards are considered unsecured credit, meaning customers rank alongside other creditors unlikely to see their money returned.

How to Lodge a FEG Claim

Former employees were urged to act quickly, with claims needing to be lodged within 12 months of either the liquidation date or the end of their employment.

Submitting claims online through FEG Online Services was advised as the fastest method.

Supporting documents such as contracts and payslips would help speed up the process, though processing often stretched beyond the 16-week target due to demand.

Broader Retail Implications

The wider retail sector continued to struggle, particularly franchise operators, who often failed even while the global brand they represented remained secure.

Nike itself remained strong, though this distinction meant little to the 113 workers facing sudden unemployment.

Workforce Australia offered further support to those made redundant, with tailored assistance designed to help people return to work.

The liquidator’s office was still finalising details with Nike and shopping centre landlords to complete the wind-down.

If the sudden closure of six Nike stores has you concerned about the stability of other retail brands, it’s worth seeing how similar situations have unfolded elsewhere.

Some companies appear secure one day, only to leave staff and customers scrambling the next.

Exploring other real-life examples can help you stay informed and prepared for unexpected business collapses.

Read more: Retailers are folding fast—is this Aussie brand the next to go?

For the workers and shoppers left behind, the sudden closures were a stark reminder of how fragile retail jobs and promises can be—have you ever been caught off guard by a company collapse?