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

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

  • Maan
  • By Maan
1759369826934.png 113 workers thought it was just another shift…then THIS retail giant collapsed
Nike staff blindsided by sudden store closures. Image source: Youtube/9 News Australia

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.




‘The companies are no longer able to trade as ‘Nike’ stores and are no longer trading, effective immediately.’

BCR Advisory







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.




'Eligible employee entitlements, including unpaid Annual Leave, wages and redundancy payments will be paid under the Commonwealth Government FEG scheme.'

BCR Advisory




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.




Important reminders for affected Nike employees



  • You have 12 months from September 26, 2025, to lodge your FEG claim

  • Claims can be made online at FEG Online Services

  • Processing typically takes up to 16 weeks

  • FEG covers wages, annual leave, and redundancy but NOT superannuation





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.



What This Means For You


Six Nike stores across Sydney closed without warning, leaving 113 staff suddenly out of work.



Employees affected by the collapse may be able to claim unpaid wages, annual leave, and redundancy through the government’s Fair Entitlements Guarantee (FEG) scheme, though there are limits to what can be recovered.



Unfortunately, gift cards from the shuttered stores are now worthless, leaving customers out of pocket.



To make matters worse, unpaid superannuation is not covered by FEG, meaning workers will need to pursue those contributions separately through the Australian Taxation Office.



For anyone reading, this serves as a reminder to stay alert when it comes to the stability of the businesses you rely on—whether as a worker or a customer.



A job or a store credit you thought was secure can vanish overnight, leaving you to pick up the pieces.




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?

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Thank You to the government, in my life I have NEVER seen or heard of so many shops cafe's restaurants factories and businesses close/go to the wall, this has got to stop, we now have so many people out of work, no Christmas celebrations in their homes this year, and the stores that are closing are well known stores, geez I thought it bad when Grace Brothers closed but even now the big shops are closing...........it's getting very very scary for young and old alike. Heaven Help us I think because I don't think the government will some how.
 
I feel our country is going down the drain
 
That's what online shopping does to bricks and mortar stores.
 
And unfortunately I am sure there will be many more yet to close. Rents are too high and there are too many stores not able to sell enough to make a profit in this cost of living crisis. It's going to get alot worse I fear unfortunately.
 
It’s not only in Australia.

“…many well-known department stores in the UK and across Europe are closing or have recently closed due to declining profits, rising costs, and the shift to online shopping and discount retailers.”

The same is happening throughout North America as well.

So easy for those to say, “It’s the government’s fault”. Look at the real reasons.
 
Thank You to the government, in my life I have NEVER seen or heard of so many shops cafe's restaurants factories and businesses close/go to the wall, this has got to stop, we now have so many people out of work, no Christmas celebrations in their homes this year, and the stores that are closing are well known stores, geez I thought it bad when Grace Brothers closed but even now the big shops are closing...........it's getting very very scary for young and old alike. Heaven Help us I think because I don't think the government will some how.
Many of these stores closing are high priced stores, selling goods made by the same factories that make KMart goods and selling them for massive profits, people are waking up, people can't afford to keep paying say $100 for a shirt that they can buy similar for $20 elsewhere.

And small businesses have always been a problem for many. Too many people go into a small business, wanting to work for themselves and think they will make a mint but they have little knowledge of how to run a business.

I seen numerous times where the business doesn't allow for GST in their accounts. They receive GST for their goods and services, this must be passed onto the government when they complete their BAS, but this time comes and they do not have the cash to pay. It's not their money, it's a tax that they are holding until BAS time.

Businesses failing is not new, been happening from day one, maybe you hear more about it now due to instant communications around the world. You also have online shopping, and again a smart business owner aligns their business to the modern way.

For example, people next to me own a hunting/fishing shop, they have now started to do online trading, gradually building up their website to now include most goods they sell in store to be available online and it's thriving.
 
Many of these stores closing are high priced stores, selling goods made by the same factories that make KMart goods and selling them for massive profits, people are waking up, people can't afford to keep paying say $100 for a shirt that they can buy similar for $20 elsewhere.

And small businesses have always been a problem for many. Too many people go into a small business, wanting to work for themselves and think they will make a mint but they have little knowledge of how to run a business.

I seen numerous times where the business doesn't allow for GST in their accounts. They receive GST for their goods and services, this must be passed onto the government when they complete their BAS, but this time comes and they do not have the cash to pay. It's not their money, it's a tax that they are holding until BAS time.

Businesses failing is not new, been happening from day one, maybe you hear more about it now due to instant communications around the world. You also have online shopping, and again a smart business owner aligns their business to the modern way.

For example, people next to me own a hunting/fishing shop, they have now started to do online trading, gradually building up their website to now include most goods they sell in store to be available online and it's thriving.
Yep, it`s time to pay the Piper, these businesses have had a golden age and got away with it the consumers were being ripped of and the profits going to the retailer. It has all caught up!!
 
I think the retailer has been brutal to it`s staff and so called valued customers. I would not deal with them and I hope they eventually have to pay out all the staff and customers that have lost out big time. Also this is happening world wide, people are waking up to the fact they they can buy the same goods online for a fraction of the price.
AS FOR THIS BEING AN ISSUE YOU CAN BLAME ON THE CURRENT GOVERNMENT, IT IS GOING ON ALL OVER THE WORLD, MOST WESTERNISED COUNTRIES ARE CURRENTLY IN RECESSION OR ABOUT TO GO INTO RECESSION. AUSTRALIA IS STILL RECESSION FREE!!
 
I feel our country is going down the drain
I do too & it’s sad. Australia used to be a great country when we were growing up as kids- no more
 
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That's what online shopping does to bricks and mortar stores.
No choice but to shop online, because you can't buy anything in the stores.
 
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Thank You to the government, in my life I have NEVER seen or heard of so many shops cafe's restaurants factories and businesses close/go to the wall, this has got to stop, we now have so many people out of work, no Christmas celebrations in their homes this year, and the stores that are closing are well known stores, geez I thought it bad when Grace Brothers closed but even now the big shops are closing...........it's getting very very scary for young and old alike. Heaven Help us I think because I don't think the government will some how.
The huge majority of the Grace Bros closures occurred during John Howard's time in office.

Some became Myer or Target stores under the Coles Myer Group, who were briefly owned by Wesfarmers.

Too bad Skechers hasn't gone the way of Nike....yet.
 
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We were told that Public Liability Insurance has "killed" a lot of business and non-profit organisations - including charities
 
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Why do people blame the govt. It’s greed that causes all of this plus online shopping. What can the govt do about it I ask? LNP voters always point the finger at an ALP govt but never say how to fix it. After all it’s been the lnp who have done most of the privatisation in this country. 🤷‍♀️
 

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