Myer plans to shut 10 standalone stores of Sass & Bide after describing the label as underperforming in its latest trading update, leaving only four still trading.
The closures will occur early next month, with four stores continuing to operate in WA, Victoria and Queensland. The brand will remain available inside the company’s department stores and online.
Myer bought a controlling stake of Sass & Bide for $42.3 million in 2011 before buying the remainder. The label was founded in 1999 by Sarah-Jane Clarke and Heidi Middleton.
The department store chain flagged a drop in profit for this fiscal year in its latest trading update. The underperforming Sass & Bide brand, as well as Marcs and David Lawrence were listed among the contributing factors.
The store closures come ahead of the company’s proposed merger with Premier Investments’ apparel brands, which include Just Jeans, Jay Jays, Portmans, Jacqui E, and Dotti.
Paula Mackenzie, MD of the three brands, told the Australian Financial Review that head office costs would also be cut along with the closures amid weaker sales.
The company has reviewed the store footprint to ensure it is aligned with the in-store concessions and online business before making the “difficult decision”, she said.
Mackenzie added the closures are necessary to ensure business sustainability as Myer plans to expand the concession model of Sass & Bide, Marcs and David Lawrence.
