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Michael Hill International will cop a $5.8 million hit as it exits its US business.

The jewellery retailer was unable to secure a buyer for its US stores.

As a result, lease terminations and employee severance costs will set it back US$4.5 million.

Michael Hill International decided to wind up its US branch in January.

The latest turn will see all nine US stores close on April 30, it confirmed in a statement to shareholders.

"Efforts to find a purchaser for the US business did not result in any satisfactory offers.

"The company has therefore negotiated non-binding in-principle lease exit terms with all US landlords and will now proceed to negotiate binding formal documentation with those landlords."

This is the second major issue for Michael Hill International in recent times.

It has also downsized its embattled Emma & Roe retail network, with 24 stores to shutter at a cost of up to $7.9 million.

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