Lincraft to Close All Physical Stores, Shift to Online-Only Model
The 86-year-old Australian retailer will shut down all 32 locations, resulting in approximately 300 job losses.
Lincraft, the Australian fabric, crafts and homewares chain, announced on Tuesday that it will close all 32 of its physical stores over the coming months. The company will transition to an online-only business model.
The company's managing director, John Maguire, stated that the decision was made two years ago due to changing retail trends, including the rise of fast fashion and online shopping. Around 300 employees will lose their jobs.
A History of Struggle
The company began as a market stall in Melbourne in 1938. Lincraft has been in financial difficulty since entering receivership in 2005. Maguire and co-owner Brian Swersky took over that year and implemented aggressive cost-cutting measures to keep the business afloat.
Efforts to Adapt
Despite various attempts to evolve—including expanding product lines and focusing on education and social media—the chain could not sustain its physical footprint.
"The decision was made two years ago due to changing retail trends," said Managing Director John Maguire.
What Comes Next
Lincraft's online business will continue with an expanded product range. The closure of the physical stores is scheduled to take place over the coming months.