When it was originally announced last week that Dick Smith was to close all its stores across the country, the Move airport locations were said to be staying open.
However, Dick Smith receivers Ferrier Hodgson have today announced the immediate closure of four Move airport stores at Sydney Airport.
Receiver James Stewart said, “Unfortunately, we have been unable to reach agreement to sell the Move Airport assets and have no option but to close the stores located at Sydney International Airport effective from today.”
There are 48 staff employed at the stores, all of whom will be offered the opportunity of redeployment at other retail stores for the next 7 weeks before they also close down.
The Move airport stores were opened in an exclusive partnership with global duty free operator Heinemann in February 2015. At the time, former CEO Nick Abboud said that the airport stores were expected to generate up to $50 million worth of sales in their first retail year.
“This opportunity is consistent with our strategy of achieving strong sales and profit growth through low capital intensity initiatives such as David Jones and Move,” he said.
The original plan for the Move airport brand was to have 20 airport stores open throughout 2015, but financial problems slowed down its expansion.
It was announced last Thursday that all stores across Australia and New Zealand will close over the next eight weeks.
Approximately 2,460 staff will be impacted by the 301 store closures in Australia and approximately 430 staff from 62 stores in New Zealand, with all receiving redundancy payouts unless they resign earlier.
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