An insider has revealed collapsed retail chain Glue had been in crisis for years with too much stock, costs too high and unhappy staff on minimum wage – and said it was only a matter of time before the brand crumbled.
The youth fashion retailer’s parent company Accent Group announced on Wednesday that all 16 remaining stores would shut down by the end of the financial year after profits plunged by $8million.
Accent bought the business for just $13million in 2021 – a comparatively low price, given Glue’s direct competitor General Pants was sold to Alquemie Group for $60million the following year.
At the time of acquisition, Glue had 21 stores Australia-wide and carried popular brands including Abrand, Nike, Nude Lucy, Thrills, Ksubi, New Balance, Adidas, Deus and Birkenstock.
Now, a store insider – who didn’t want to be identified – has told the Daily Mail they were not surprised by Wednesday’s announcement.
They agreed with industry analysts who said the collapse was likely due to rising labour costs in Australia, but said staff turnover was high and morale was low.
‘Glue was struggling before it was sold, but then Accent came in and they’ve been savage with it,’ they said.
‘They cut resources and they kept doing it until it didn’t make sense, and then wondered why it wasn’t working.’
Glue’s parent company Accent Group announced on Wednesday that all 16 remaining stores would shut down by the end of the financial year. Pictured: A model wearing clothes from Glue
When Glue was acquired by Accent Group in 2021, there were 21 stores Australia-wide
Despite resource cuts, the source said, Accent placed a huge amount of pressure on remaining staff by asking them to run very large stores with high volumes of stock.
Most of the retail staff were on minimum wage.
‘You’ve then got people leaving because expectations are so high that they’re burning out, and then new people come in and they aren’t trained properly,’ they said.
‘It made sense to Accent because labour costs are so high, but it means people aren’t being served in stores so sales aren’t being made.’
They also said a lot of the stock ordered to fill the large stores wasn’t being sold.
Gene Tunny, director of Brisbane-based consultancy Adept Economics, previously told the Daily Mail high wages had placed pressure on a number of businesses.
However, consumers are spending less due to the high cost of living.
Glue was founded in 1998 by Australian retail entrepreneur Hilton Seskin and was acquired by Accent Group from JD Sports Fashion in 2021.Â
Glue profits plunged by $8million in the first half of 2026. Pictured: A Glue store in Melbourne
It also owns and operates a number of major retail chains including The Athlete’s Foot, Hype DC, Platypus Shoes, Skechers and Vans.
It is understood Accent Group plans to narrow its focus on global brands, after becoming the exclusive local distributor of Lacoste in 2024.Â
The company plans to roll out 40 new stores across its other brands before the end of the financial year, up from 27.
New outlets include Sports Direct brand, which opened its first Melbourne store in November, with three more planned to open over the next year.
Accent Group chair Lawrence Myers said the business had ‘navigated a challenging retail environment’ since the end of 2025.
‘The board is encouraged by the early performance of Sports Direct following its successful launch, as well as the progress made across the broader growth plan,’ he said.
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Glue insider lifts the lid on the REAL reason why the high street retail chain suddenly crashed