Australian family shoe store Betts is preparing to close more than half of its bricks and mortar portfolio following years of decline.
This comes after the brand appointed a voluntary administrator to accelerate a restructure of its business model.
The brand, which operated nearly 220 shoe stores at its peak, will now close 20 of its remaining 35 outlets around Australia.
Some 15 stores are expected to keep operating, including flagship stores in Sydney, Melbourne and Perth, as the company continues to pivot its operations online.
Voluntary administrator Lindsay Bainbridge, from Pitcher Partners Melbourne, said the company had been working to close and move on from unprofitable stores. However, the recent slump in consumer sentiment, coupled with a higher fuel price and rising business costs, meant it had to move on the remaining underperformers.
“Australians grew up with Betts shoes, they know and love the brand, and we believe it has a strong outlook as a more streamlined operation,” he said.
“But the retail conditions and falling foot traffic in a lot of centres just are not sustainable for the business. We will close some stores, focus on strengthening others, and continue the company’s plans to expand retail online.”
As part of the restructure, Bainbridge and his team are running sales events from Friday this week, with heavy discounts starting at 50 per cent at closing stores across the full range of women’s shoes, bags and accessories.
Summer stock will also be landing in stores every week, so the focus now is current season boots, shoes, bags and accessories.
Bainbridge said this amounts to 120,000 pairs of shoes, bags and accessories that will go on sale.
“Customers can check stock online, but the best deals will be in the stores flagged for closure, where we will be running out stock at great prices,” Bainbridge said.
Of the stores closing, all three remaining South Australian stores will close, as will the Betts outlet in Darwin, and seven of the 11 stores in Western Australia.
Four stores will close in New South Wales, four in Victoria and one in Queensland. A full list is included at the end of this story.
Bainbridge said the family had broken the news to staff and all efforts were being made to support team members in closing stores, including relocating some employees to stores that would continue trading.
“Our goal is to make sure we can drive sales and revive interest in a brand that has been part of almost every Australian’s story,” he said.
“Betts has been a staple for 134 years and we want a result that ensures the brand can thrive for many years to come.”
Betts is owned and managed by the Breckler family, including Michael Breckler as CEO and Danny Breckler as chairman.
Western Australia
- Betts Hay Street (Hay Street Mall)
- Betts Gateway (Cockburn Gateway)
- Betts Mandurah (Mandurah Forum)
- Betts Brand Direct WA (Watertown Brand Outlet West Perth)
- Betts Brand Direct DFO Perth (Perth Airport)
- Betts Whitfords (Whitford City) (closing imminently)
- One of two Betts Joondalup stores (closing imminently)
South Australia
- Betts Modbury (Westfield Tea Tree Plaza)
- Betts West Lakes (Westfield West Lakes)
- Betts Marion (Westfield Marion)
Northern Territory
- Betts Casuarina (Casuarina Square)
New South Wales
- Betts Macquarie (Macquarie Centre North Ryde)
- Betts Liverpool (Westfield Liverpool)
- Betts Rouse Hill (Rouse Hill Town Centre)
- Betts Kotara (Westfield Kotara)
Victoria
- Betts Greensborough (Greensborough Plaza – will close imminently)
- Betts Ringwood (Eastland Shopping Centre)
- Betts Doncaster (Westfield Doncaster)
- Betts Fountain Gate (Westfield Fountain Gate)
Queensland
- Betts Indooroopilly (Indooroopilly Shopping Centre)