Diana Ferrari has become the latest victim of Australia’s struggling retail climate

FOOTWEAR label Diana Ferrari will close the majority of its stores in early 2018 in what is being described as a “strategic decision”.

ICONIC Australian footwear, clothing and accessories label Diana Ferrari will close the majority of its bricks-and-mortar stores within months.

Of the 17 Diana Ferrari stores, “at least four” will be rebranded by parent company Munro Footwear Group while the rest will be closed, a spokeswoman said. The six Diana Ferrari clearance stores will remain open and the brand will maintain an online presence.

The company announced the news in an email to shoppers this week.

“All Diana Ferrari stores will be closed over the coming months, but our fabulous footwear will continue to be available through our online stores, Mathers, Williams, wholesale stockists and major department stores,” the email said. “We truly appreciate and thank all our loyal clothing customers over the last 17 years.”

Diana Ferrari stores in Woden in the ACT and Chatswood, Penrith and Hornsby in NSW will shut down on January 21, followed by Miranda in NSW and Knox in Victoria the week after on January 28.

Diana Ferrari has been part of MFG since the company acquired previous owner Fusion Retail Brands in June 2017. MFG owns a number of high-profile Australian footwear brands including Midas, Wanted and Mollini Shoes, Williams and Colorado.

It is understood retail staff who now work at Diana Ferrari stores will be absorbed into other shops within MFG.

According to Smart Company, MFG chief executive Jay Munro said the decision to close stores and end the brand’s clothing line was made due to the company’s “core business and objective of being Australia’s best footwear company”.

“This was a difficult decision because Diana Ferrari Retail and its apparel division have been solid performers with a loyal customer base and staff dedicated to a high level of customer service,” he said.

“However, focusing purely on footwear across all MFG brands is the right strategic decision for the company in the current retail landscape.

“Diana Ferrari is an iconic Australian footwear brand and MFG is committed through this change to further strengthen the brand going forward.”

Diana Ferrari is just the latest victim of the sluggish retail climate.

Earlier this month, Australian plus-size label Maggie T, which was founded in 1981 and fronted by actor Maggie Tabberer, collapsed into voluntary administration.

Luxury handbag brand Oroton received a takeover bid from a major shareholder late last month after going into administration in November.

Other big-name retailers that have faced recent collapse include Topshop and Topman Australia, Marcs, David Lawrence, Herringbone, Rhodes & Beckett, Pumpkin Patch and Payless Shoes, while Speciality Fashion Group, whose stable of brands includes Katies, Millers and Rivers is in the process of closing more than 300 stores.

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Correction: An earlier version of this story said there were 23 retail stores and 11 clearance outlets, all of which would be closed. Diana Ferrari has 17 retail stores, “at least four” of which will be rebranded with the rest to close, and six clearance outlets, which will remain open.