Several Nike stores are set to close across Sydney, with over 100 employees affected, after a local Nike licensee fell into liquidation last week.
On Friday, September 26, several companies under AF1, which had operated licensed Nike stores in Sydney’s eastern and northern suburbs, were placed into liquidation. John Morgan of BCR Advisory was appointed liquidator.
The Nike stores affected are Bondi Junction, Burwood, Castle Hill, Neutral Bay, Chatswood, Sydney CBD and Warringah.
According to BCR in a statement, the companies are no longer able to trade as “Nike” stores and therefore have ceased trading with immediate effect.
The wind-up has resulted in BCR issuing 113 termination letters to employees. Eligible employee entitlements, including unpaid annual leave, wages and redundancy payments will be paid under the Commonwealth Government FEG scheme. The liquidator’s office has provided affected employees with information about this scheme and how to apply for compensation from this Commonwealth Government funding.
Alongside the sacking of employees, BCR confirmed that gift certificates and store credits cannot be honoured – these represent unsecured claims against the companies which operated the stores. The total value of these gift cards and store credits is not yet known.
"The liquidator’s office is working with Nike and the various landlords to arrange an orderly closure of the shops and, where appropriate, return of goods to Nike under its supply arrangements," BCR added.
"The liquidator’s office will separately write to all employees and trade creditors, inviting them to lodge their claims and will communicate with them directly regarding their individual debts and the winding up generally."
As well as being a licensee for Nike stores in Sydney, AF1 also offered retail training and consultancy services.
This comes as Nike reported a 1 per cent lift in total sales globally to US$11.7 billion (~A$17.6 billion) in the first quarter of the 2026 financial year to August 31.
The company’s Asia Pacific and Latin America market – which would include Australia, had a total sales lift of 2 per cent, driven by a 7 per cent lift in apparel and a 1 per cent lift in footwear, but offset by a 6 per cent fall in equipment.