City Chic will shutter 14 of its stores after failing to secure rent reductions from landlords during the coronavirus epidemic.
As retailers feel the brunt of social distancing measures on store sales, landlords have been called on to provide fairer terms.
This week, Sussan Group owner Naomi Milgrom reportedly placed a freeze on rental payments for April and May.
According to Fairfax, reopened stores will now pay rent as a proportion of turnover.
Retail powerbroker Solomon Lew made similar headlines during the pandemic, openly refusing to pay rent on 1200 stores during lockdowns.
Lew said reopened stores would also only pay a percentage of gross store sales rather than fixed rent.
For City Chic, its consolidated network will see it reduce locations from 106 to 92.
The remaining 92 stores will trade with reduced rents, as well as reductions for the time spent in hibernation.
6one5 Retail Consulting Group founder Bill Rooney said landlords need to come to the table.
“Landlords in COVID-19 times are co-dependent on the retailers to survive, being professional means sitting down with the retailer to sort through how both parties can survive the next 12-18 months.”