Betts, one of Australia’s longest-running shoe chains, has called in voluntary administrators and will close more than half of its brick-and-mortar stores. Some 15 stores are expected to keep operating, as the iconic shoe company pivots its operations online.
The shoe store has been slowly closing outlets in recent years following the shift to online shopping and a drop-off in foot traffic. It once operated nearly 220 stores at its peak, but has now confirmed it will close 20 of its remaining 35 outlets around Australia.
Lindsay Bainbridge from Pitcher Partners Melbourne has been appointed as voluntary administrator. A spokesperson confirmed to Yahoo Finance the tough decision was focused on store performance, with seven stores to close in WA, four in NSW, four in Victoria, three in South Australia, one in Queensland and one in the Northern Territory.
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Bainbridge said the company had been working to close and move on from unprofitable stores but the recent slump in consumer sentiment, coupled with rising 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.”
Betts operated nearly 220 shoe stores at its peak. ยท Source: Betts/Facebook
Bainbridge said Betts had advised staff of the news and some would be relocated 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 was founded in 1892 and began as a small bootmaker’s shop in Perth. It remains family-owned after five generations.
Which Betts stores are closing?
A spokesperson told Yahoo Finance the impacted 20 Betts stores would trade for four to eight weeks, with massive discounts before closing.
Sales will begin on Friday, with discounts starting at 50 per cent at closing stores across the range of women’s shoes, bags and accessories.
“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.