Nike has closed seven stores in Sydney after one of its franchisees went into liquidation.

The franchisee, AF-1, had operated seven Nike shops on Pitt St in the CBD, Bondi, Neutral Bay, Burwood, Chatswood, Warringah and Castle Hill since 2006. 

In a notice sent to the Australian Securities and Investments Commission (Asic) last week, the company said it would be wound up and appointed BCR Advisory’s John Morgan as liquidator.

In a statement, Morgan told Australian Business Network that the Nike stores ceased trading immediately, with all 115 employees losing their jobs. Customers’ store credits and gift certificates are no longer be redeemable.

“Eligible employee entitlements, including unpaid annual leave, wages and redundancy payments will be paid under the Commonwealth government (Fair Entitlements Guarantee) scheme,” Morgan said.

“The liquidator’s office has provided affected employees with information about this scheme and how to apply for compensation from this Commonwealth government funding.”

According to The Daily Mail, Nike confirmed it has ended all agreements with AF-1. Other Sydney stores that are not managed by the franchisee will continue to open.

The news comes as Nike reported a modest 1 per cent uplift in total revenues for the fiscal first quarter. In Apac, sales were down 6 per cent, in contrast to the uplifts in North America and EMEA.