Fashion retailer to close flagship stores, citing sales pressure
The business's landmark store in central Sydney's Queen Victoria Building 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 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 an Australian 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.
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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West Australian
3 hours ago
- West Australian
Australia, UK solidify AUKUS deal as Pentagon review raised at high-level Australia-UK talks in Sydney
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When the UK Government came to power, they, in turn, undertook a review. This is a very, very natural step.' Australia had spearheaded the AUKUS pact in 2021 under then-Prime Minister Scott Morrison, after recognising the country needed to rapidly upgrade its defence capabilities. Labor then agreed to continue it. But Mr Trump's return to the White House in January has sparked new doubts over the pricey pact, as Washington slaps controversial tariffs on multiple countries, including close allies UK and Australia. Australia has also been pressured to increase defence spending in line with the NATO agreement for governments to raise their expenditure to 5 per cent of their country's GDP by 2034. While Australia currently spends about two per cent of its GDP on defence — on track to rise slightly above 2.3 per cent by the end of the decade — Washington has signalled that may not be enough. The UK's increase to 2.5 per cent of GDP by the end of the decade, equivalent to an extra £75 billion, was announced at last month's NATO summit and welcomed by US officials. The Coalition welcomed the UK-Australia treaty but called for defence spending to be increased, urging the Albanese Government to show greater commitment to the US. 'The Albanese Government must urgently demonstrate the same clarity and commitment with the United States,' a joint statement by shadow ministers Michaelia Cash and Angus Taylor said: 'Particularly in light of the Pentagon review, to reassure our partners that Australia can deliver on its contributions and, in turn, secure continued US backing for the agreement. 'Australia must do what we can to ensure AUKUS' longevity and success.' 'At a time of rising global instability, sustained underfunding risks weakening Australia's deterrence and damaging trust in our alliances,' they said. 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'It doesn't solve the issue of the gap between now and when those submarines start being delivered,' he said. 'That's where the American Virginia class gap-filling really comes into play.' But he reiterated that the AUKUS arrangement was a three-nation pact and can be reinforced by each side, saying if confidence dips in one party, strengthening ties with the others can help balance it out. 'This is a clear commitment from the UK to honour its side of the bargain, and I think hopefully that should steady some of the nervousness around Washington's commitment levels,' he said. Greens Senator David Shoebridge blasted the new treaty, calling it a backward step that enriches foreign arms companies and damages regional ties. 'Australia needs to look to our region, not tie our future to a dying empire a world away. All this will do is line the pockets of foreign arms companies and alienate our neighbours,' Senator Shoebridge said. But Dr Graham said Australia must pay to play, and it was necessary to offshore work because Australia lacks the technology to produce the subs on its own. 'If Australia wants capability, it has to buy it. It can't produce it itself,' he said. 'As part of that, Australia is committed to directly investing in the defence industrial base of both countries. 'That's money that's going to leave Australia and go into other countries, but those other countries are providing a service. It's like anything else.' Mr Marles expressed the importance of Australia's 'oldest relationship' with Britain amid global uncertainty and a 'great power contest' in the region. UK Foreign Secretary David Lammy labelled the AUSMIN talks as ' focused and constructive' and the pact a 'landmark treaty' which was necessary in a 'turbulent world'. 'It's clear that the UK-Australia relationship is an anchor in what is a very volatile world, providing stability in troubled waters and a relationship that holds steady,' he said. 'Whichever way the geopolitical winds are blowing . . . I think we're sending a clear signal, a signal of the UK's commitment to this region of the world.' He said the UK was determined to keep the Indo-Pacific 'free and open'. Senator Wong said the relationship was rooted in shared values and interests, but it was important to 'modernise' the partnership to meet current global challenges. 'We all know we face the most challenging, strategic circumstances since World War II. More conflict, more contest, a multilateral system under strain,' Senator Wong said. 'And against that backdrop, the partnership between our nations matters even more. And we are determined to work together to modernise our partnership, to take the world as it is, but to work together to shape it for the better. 'We've had an excellent set of discussions today.' Both parties will travel to Mr Marles' Geelong electorate tomorrow, where the agreement is expected to be officially signed. Mr Marles and Ms Wong will also join their UK counterparts in Darwin on Sunday for the visit of the UK Carrier Strike Group, the first such deployment to Australia since 1997, taking place during Exercise Talisman Sabre 2025.
SBS Australia
12 hours ago
- SBS Australia
Australia and UK to sign new 50-year treaty amid US uncertainty
The United Kingdom has underscored its commitment to AUKUS after revealing it will sign a new 50-year treaty with Australia, amid questions over US involvement in the trilateral security pact. The treaty will be inked when Foreign Minister Penny Wong and Defence Minister Richard Marles host their UK counterparts David Lammy and John Healey in Sydney on Friday for regular Australia-UK ministerial meetings, according to British news agency PA. "This historic treaty confirms our AUKUS commitment for the next half century," UK defence secretary Healey said. While the AUKUS nuclear submarine partnership involves the US, UK and Australia, the treaty is between the latter two nations, as a Pentagon review into the agreement threatens America's future participation. Australia and the UK are expected to lay out the bilateral aspects of the agreement and explore ways the two countries can work together over the next half-century. In a joint statement, Marles and Wong said the Australia-UK Ministerial Consultations, or AUKMIN, were critical to the two nations' shared interests. "We take the world as it is — but together, we are working to shape it for the better," Wong said. Under the $368 billion AUKUS program, Australia will buy at least three Virginia-class nuclear-powered submarines from the US in the early 2030s. A new class of nuclear submarines will be built in Adelaide and delivered in the 2040s. The US had promised to sell Australia nuclear-powered attack submarines under the AUKUS agreement, but President Donald Trump's administration has launched a review into the deal to examine whether it aligns with his "America first" agenda. Defence analysts believe a likely outcome of the US review will be a request for more money from Australia to support its submarine industrial base. The Australian government has said it remains confident in the nuclear-submarine deal being delivered. The UK has fast become one of Australia's most important defence allies amid turmoil under the Trump administration, a security analyst says. Australian Strategic Policy Institute senior analyst Dr Alex Bristow said holding ministerial meetings on a six-monthly cycle, rather than the traditional annual timeline, highlights strengthened ties between the two nations. "The tempo of it increasing, I think, is a signal that Britain is moving into an elite category," he told AAP. The UK was probably third behind Japan and the US in terms of how strategically significant the defence relationship was to Australia, Bristow said. Meanwhile, the UK's Carrier Strike Group, led by the Royal Navy flagship HMS Prince of Wales, arrived in Darwin on Wednesday in the midst of the Talisman Sabre multi-nation military exercises being hosted by Australia. It's the first UK carrier strike group to visit Australia since 1997. The international task group includes five core ships, 24 jets and 17 helicopters, centred on the flagship aircraft carrier. On Sunday, Marles and Wong will join their counterparts in Darwin to observe the UK Carrier Strike Group in action at Talisman Sabre. UK High Commissioner to Australia Sarah MacIntosh said the arrival of the strike group was a demonstration of commitment to the region and the strong relationship with Canberra. "This is an anchor relationship in a contested world," she said. Bristow said Australia should be welcoming carrier strike groups from European countries. He said NATO had identified China as a threat to its interests as Beijing continues to collaborate with Russia and North Korea. "It's entirely in the interests of European allies in NATO to be working with Indo-Pacific allies," Bristow said.
The Advertiser
13 hours ago
- The Advertiser
Hunter Street Mall makeover: parking limits slashed, markets scrapped
MARKET stall holders will get the boot and parking will be limited to one hour in part of the Hunter Street Mall as Newcastle council works to bolster local businesses. The state of the mall came under the microscope at a council meeting this week after residents raised concerns with graffiti, lighting, road signage and disability access earlier this year. Independent councillor Peter Gittins said a number of those issues had been addressed, but graffiti was still a big problem. "The point that I would like to stress, and stress strongly, is the graffiti plague that is absolutely and totally evident in this city," he said. "Not only in the area between Newcomen and Thorne streets, but along Hunter Street in particular." Business Improvement Associations have funding available for beautification, and the City of Newcastle has undertaken public domain works as part of its East End Village project, aimed at reinstating Hunter Street as a traditional high street. The original motion to the council suggested working with businesses to remove graffiti or install public art; reviewing parking arrangements in the mall to support an additional 30-minute unpaid parking period, and asking council staff to scope a time-bound CCTV trial to address antisocial behaviour. What was approved largely acknowledged the work already under way. The council has been reviewing CBD parking since July 2024. A City of Newcastle spokesman confirmed that two-hour paid parking between Brown and Wolfe streets will drop to a one-hour limit. "This will ensure parking spaces turn over more regularly to support local businesses during planned construction works on the East End Village project," he said. In 2009, the council signed a contract with Sydney-based Chourlartons Australia, trading as Organic Food Markets, to operate markets in the mall. Initially designed to complement brick-and-mortar traders, the contract has continued on a month-to-month basis since 2017 and has recently dwindled to just two regular stallholders. Now, the council said they are operating in "direct competition" with nearby businesses. "The Newcastle Business Improvement Association wrote to City of Newcastle in 2023, indicating they do not support the continuation of the markets, as they have had a negative impact on the trade of the existing established businesses," a council spokesman said. With the next stages of the East End Village works looming, the space used by stallholders will no longer be available. The council spokesman said the market operator and stallholders were told about the changes in 2023, and the council is now preparing to issue a formal notice. The council has committed $6.5 million to renewal works in the precinct in its 2025-26 budget, including new footpaths, tree planting, road resurfacing and stormwater and water infrastructure replacements. Stage 5 of the East End Public Domain Plan has been funded for detailed design. Labor councillor Declan Clausen said he is optimistic about the changes coming to the mall. "At the moment, there is a billion dollars worth of private capital currently being invested into the mall, and it is creating a better environment than what was there previously," he said. "But it is disruptive, that's fair to say, and it has had an impact on some of the existing traders in the mall, as well as a result of the vacancies that have been necessary as demolition and construction work have continued." Cr Clausen said the process has been a "little clunky" but praised the businesses that have kept trading. "What I fear as a council is that when we talk negatively ... or point out some of these issues, the consequence of that is that it could turn away people and customers that would otherwise wish to visit that precinct," he said. Future changes to Hunter Street will include upgrades on Laing Street, Market Street and the potential for a Melbourne lane-way style development by closing Keightley Street to traffic. MARKET stall holders will get the boot and parking will be limited to one hour in part of the Hunter Street Mall as Newcastle council works to bolster local businesses. The state of the mall came under the microscope at a council meeting this week after residents raised concerns with graffiti, lighting, road signage and disability access earlier this year. Independent councillor Peter Gittins said a number of those issues had been addressed, but graffiti was still a big problem. "The point that I would like to stress, and stress strongly, is the graffiti plague that is absolutely and totally evident in this city," he said. "Not only in the area between Newcomen and Thorne streets, but along Hunter Street in particular." Business Improvement Associations have funding available for beautification, and the City of Newcastle has undertaken public domain works as part of its East End Village project, aimed at reinstating Hunter Street as a traditional high street. The original motion to the council suggested working with businesses to remove graffiti or install public art; reviewing parking arrangements in the mall to support an additional 30-minute unpaid parking period, and asking council staff to scope a time-bound CCTV trial to address antisocial behaviour. What was approved largely acknowledged the work already under way. The council has been reviewing CBD parking since July 2024. A City of Newcastle spokesman confirmed that two-hour paid parking between Brown and Wolfe streets will drop to a one-hour limit. "This will ensure parking spaces turn over more regularly to support local businesses during planned construction works on the East End Village project," he said. In 2009, the council signed a contract with Sydney-based Chourlartons Australia, trading as Organic Food Markets, to operate markets in the mall. Initially designed to complement brick-and-mortar traders, the contract has continued on a month-to-month basis since 2017 and has recently dwindled to just two regular stallholders. Now, the council said they are operating in "direct competition" with nearby businesses. "The Newcastle Business Improvement Association wrote to City of Newcastle in 2023, indicating they do not support the continuation of the markets, as they have had a negative impact on the trade of the existing established businesses," a council spokesman said. With the next stages of the East End Village works looming, the space used by stallholders will no longer be available. The council spokesman said the market operator and stallholders were told about the changes in 2023, and the council is now preparing to issue a formal notice. The council has committed $6.5 million to renewal works in the precinct in its 2025-26 budget, including new footpaths, tree planting, road resurfacing and stormwater and water infrastructure replacements. Stage 5 of the East End Public Domain Plan has been funded for detailed design. Labor councillor Declan Clausen said he is optimistic about the changes coming to the mall. "At the moment, there is a billion dollars worth of private capital currently being invested into the mall, and it is creating a better environment than what was there previously," he said. "But it is disruptive, that's fair to say, and it has had an impact on some of the existing traders in the mall, as well as a result of the vacancies that have been necessary as demolition and construction work have continued." Cr Clausen said the process has been a "little clunky" but praised the businesses that have kept trading. "What I fear as a council is that when we talk negatively ... or point out some of these issues, the consequence of that is that it could turn away people and customers that would otherwise wish to visit that precinct," he said. Future changes to Hunter Street will include upgrades on Laing Street, Market Street and the potential for a Melbourne lane-way style development by closing Keightley Street to traffic. MARKET stall holders will get the boot and parking will be limited to one hour in part of the Hunter Street Mall as Newcastle council works to bolster local businesses. The state of the mall came under the microscope at a council meeting this week after residents raised concerns with graffiti, lighting, road signage and disability access earlier this year. Independent councillor Peter Gittins said a number of those issues had been addressed, but graffiti was still a big problem. "The point that I would like to stress, and stress strongly, is the graffiti plague that is absolutely and totally evident in this city," he said. "Not only in the area between Newcomen and Thorne streets, but along Hunter Street in particular." Business Improvement Associations have funding available for beautification, and the City of Newcastle has undertaken public domain works as part of its East End Village project, aimed at reinstating Hunter Street as a traditional high street. The original motion to the council suggested working with businesses to remove graffiti or install public art; reviewing parking arrangements in the mall to support an additional 30-minute unpaid parking period, and asking council staff to scope a time-bound CCTV trial to address antisocial behaviour. What was approved largely acknowledged the work already under way. The council has been reviewing CBD parking since July 2024. A City of Newcastle spokesman confirmed that two-hour paid parking between Brown and Wolfe streets will drop to a one-hour limit. "This will ensure parking spaces turn over more regularly to support local businesses during planned construction works on the East End Village project," he said. In 2009, the council signed a contract with Sydney-based Chourlartons Australia, trading as Organic Food Markets, to operate markets in the mall. Initially designed to complement brick-and-mortar traders, the contract has continued on a month-to-month basis since 2017 and has recently dwindled to just two regular stallholders. Now, the council said they are operating in "direct competition" with nearby businesses. "The Newcastle Business Improvement Association wrote to City of Newcastle in 2023, indicating they do not support the continuation of the markets, as they have had a negative impact on the trade of the existing established businesses," a council spokesman said. With the next stages of the East End Village works looming, the space used by stallholders will no longer be available. The council spokesman said the market operator and stallholders were told about the changes in 2023, and the council is now preparing to issue a formal notice. The council has committed $6.5 million to renewal works in the precinct in its 2025-26 budget, including new footpaths, tree planting, road resurfacing and stormwater and water infrastructure replacements. Stage 5 of the East End Public Domain Plan has been funded for detailed design. Labor councillor Declan Clausen said he is optimistic about the changes coming to the mall. "At the moment, there is a billion dollars worth of private capital currently being invested into the mall, and it is creating a better environment than what was there previously," he said. "But it is disruptive, that's fair to say, and it has had an impact on some of the existing traders in the mall, as well as a result of the vacancies that have been necessary as demolition and construction work have continued." Cr Clausen said the process has been a "little clunky" but praised the businesses that have kept trading. "What I fear as a council is that when we talk negatively ... or point out some of these issues, the consequence of that is that it could turn away people and customers that would otherwise wish to visit that precinct," he said. Future changes to Hunter Street will include upgrades on Laing Street, Market Street and the potential for a Melbourne lane-way style development by closing Keightley Street to traffic. MARKET stall holders will get the boot and parking will be limited to one hour in part of the Hunter Street Mall as Newcastle council works to bolster local businesses. The state of the mall came under the microscope at a council meeting this week after residents raised concerns with graffiti, lighting, road signage and disability access earlier this year. Independent councillor Peter Gittins said a number of those issues had been addressed, but graffiti was still a big problem. "The point that I would like to stress, and stress strongly, is the graffiti plague that is absolutely and totally evident in this city," he said. "Not only in the area between Newcomen and Thorne streets, but along Hunter Street in particular." Business Improvement Associations have funding available for beautification, and the City of Newcastle has undertaken public domain works as part of its East End Village project, aimed at reinstating Hunter Street as a traditional high street. The original motion to the council suggested working with businesses to remove graffiti or install public art; reviewing parking arrangements in the mall to support an additional 30-minute unpaid parking period, and asking council staff to scope a time-bound CCTV trial to address antisocial behaviour. What was approved largely acknowledged the work already under way. The council has been reviewing CBD parking since July 2024. A City of Newcastle spokesman confirmed that two-hour paid parking between Brown and Wolfe streets will drop to a one-hour limit. "This will ensure parking spaces turn over more regularly to support local businesses during planned construction works on the East End Village project," he said. In 2009, the council signed a contract with Sydney-based Chourlartons Australia, trading as Organic Food Markets, to operate markets in the mall. Initially designed to complement brick-and-mortar traders, the contract has continued on a month-to-month basis since 2017 and has recently dwindled to just two regular stallholders. Now, the council said they are operating in "direct competition" with nearby businesses. "The Newcastle Business Improvement Association wrote to City of Newcastle in 2023, indicating they do not support the continuation of the markets, as they have had a negative impact on the trade of the existing established businesses," a council spokesman said. With the next stages of the East End Village works looming, the space used by stallholders will no longer be available. The council spokesman said the market operator and stallholders were told about the changes in 2023, and the council is now preparing to issue a formal notice. The council has committed $6.5 million to renewal works in the precinct in its 2025-26 budget, including new footpaths, tree planting, road resurfacing and stormwater and water infrastructure replacements. Stage 5 of the East End Public Domain Plan has been funded for detailed design. Labor councillor Declan Clausen said he is optimistic about the changes coming to the mall. "At the moment, there is a billion dollars worth of private capital currently being invested into the mall, and it is creating a better environment than what was there previously," he said. "But it is disruptive, that's fair to say, and it has had an impact on some of the existing traders in the mall, as well as a result of the vacancies that have been necessary as demolition and construction work have continued." Cr Clausen said the process has been a "little clunky" but praised the businesses that have kept trading. "What I fear as a council is that when we talk negatively ... or point out some of these issues, the consequence of that is that it could turn away people and customers that would otherwise wish to visit that precinct," he said. Future changes to Hunter Street will include upgrades on Laing Street, Market Street and the potential for a Melbourne lane-way style development by closing Keightley Street to traffic.
