Iconic retailer shuts flagship stores
The business's landmark store in central Sydney's Queen Street Mall will be shut down as the company looks to lower costs.
It will also close its sister brand Trenery in Sydney's affluent Mosman, while its Pitt Street Mall store will close in 2028 when the lease expires.
Country Road's South African owners Woolworths previously announced weak sales coming from the Australian brand.
Sales plummeted by 6.2 per cent in the first half of the 2024-25 financial year and a further 8 per cent in the 26 weeks to December 29 as operating profits dropped 71.7 per cent to just $14.2m. Country Road will close three of its Sydney stores. NewsWire / Andrew Henshaw Credit: News Corp Australia
Country Road was founded in 1974, starting out as a smart-casual men's, women's and children's clothing store while also dabbling in homewares and accessories.
It grew out into Australia's first lifestyle brand known for high-quality apparel, accessories and homewares and became the first major Australian brand to move into the US.
In 2014, Country Road and Trenery were bought by South African brand Woolworths.
Country Road's recent falls are in line with the collapse of dozens of retailers.
Retail giant Mosaic Brands – owner of Millers, Rivers, Crossroads, Katies, Noni B and Autograph – collapsed into voluntary administration in October 2024.
In a notice to creditors delivered in February, Mosaic's total debt was tallied at more than $318m.
Iconic retailer Jeanswest also said it was hit by a 'perfect storm' of factors as it closed its stores in March, with 600 workers out of a job. Country Road is just one of many retailers struggling with cost-of-living pressures. NewsWire / Andrew Henshaw Credit: News Corp Australia
CreditorWatch's latest insolvency data shows tax cuts and interest-rate relief is slowly passing through to businesses' bottom line.
CreditorWatch's May data shows an easing in two key measures of business stress, insolvencies and B2B payment defaults, suggesting the July 2024 tax cuts, recent interest-rate reductions, slower inflation and fiscal support measures are beginning to alleviate some pressures on Australian businesses.
CreditorWatch chief executive Patrick Coghlan said the May data on defaults and insolvencies was encouraging but some sectors remained under pressure.
'This levelling off of insolvencies has been long awaited and is very welcome but we need to remember that several industries still face significant challenges, particularly those exposed to discretionary spending,' he said.
'Post-Covid, we've seen inflation hit 30-year highs.
'Those rapid price increases across the economy don't reverse when the inflation rate comes down again – the higher prices are locked in and remain as permanent pressures for businesses.'
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