Several floundering franchises in major retail chain collapse, all staff terminated

A number of retail stores in a major national chain have collapsed after landlords repossessed the premises, while staff have been terminated from their roles.

EXCLUSIVE

A number of retail stores in a major national chain have collapsed after landlords repossessed the premises, while staff have been terminated from their roles despite still being owed their final wages.

Totally Workwear supplies uniforms and other clothing items for tradesmen around Australia, in particular specialising in providing steel-capped boots.

But at the beginning of April, workers at a Sydney franchise store were told via email that the business had shut down and that they no longer had jobs.

“As you all know, we have encountered immense and considerable financial issues which have now cause (sic) us to cease trading. As a result, we need to stand down all employees,” reads part of the email sent to staff at the Hoxton Park franchise.

The same directors also ran three other Totally Workwear franchises in neighbouring suburbs of Sydney’s south west, at Narellan, Eastern Creek and North Parramatta, and those too have ceased trading.

Landlords have possessed all four sites, plastering eviction notices on the door. 

Gemma*, one of the staff members, says that workers had feared for some time that their stores were on the brink.

One of the eviction notices at one of the Totally Workwear franchise stores.

Another eviction notice as landlords got fed up with non-payment.

“We actually had a feeling something was off for probably six months,” Gemma told news.com.au. “As time wore on, you could tell something was amiss.”

A major red flag, the former employee claims, was when a private detective came to the store. “I think it was a debt collector,” Gemma said.

But there was more.

“We had access to the figures that each shop (in the group owned by the same group of people) was turning over every month. We could see it going bad.”

From September last year, Gemma also noticed that stock wasn’t being replenished.

“When I started there I reckon we had at least 100 boots in stock,” she said, adding that boots was their top selling item.

“By the end of December we had no boots, nothing.”

The landlords also repossessed the property two months earlier, but it appears that the dispute was resolved and the Hoxton Park store was able to keep limping along for another two months.

“I turned up to work in February and there was a lockout notice on the door,” Gemma recalled. “The boss said have the day off.”

The store’s policy used to be a 50 per cent deposit for large orders but in January this changed, and staff had to take full payment in order to place an order.

Gemma recalled being guilt-stricken when a couple running a start-up cleaning business wanted to put through a $7000 uniform order.

“I can’t take $7,000 off you, I didn’t think they were going to get anything for it,” she said. “Then I thought if I don’t take that money, then none of us will get paid. Morally I thought I was doing something wrong.”

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Totally Workwear supplies uniforms, high vis and other necessities to tradies around the east coast. Picture: Totally Workwear/Instagram

Gemma said a sign that the store wasn’t doing well is they didn’t replenish their number one seller, the humble work boot. Picture: Totally Workwear/Instagram

Gemma is owed her final wages as well as accrued annual leave and also superannuation.

She claims she hasn’t received any super for this whole financial year.

In the termination letter, the Totally Workwear franchisor acknowledged staff were owed money.

“We do take into consideration, that there has been a pay cycle not met,” the letter read.

“We are currently dealing with administrators and liquidators, and are in the process of selling our businesses.”

The letter went on to say that if they could not sell the business, they would liquidate, which would trigger government rescue schemes that would pay for employee entitlements.

Unfortunately, this government scheme does not cover unpaid superannuation.

As at the time of writing, all the businesses linked to the failed franchises are still registered on ASIC and have not entered into external administration.

One customer took to social media a few weeks ago to issue his own warning against the floundering franchises. 

“Don’t do business with Totally Workwear Narellan,” one customer wrote.

“Took my money in January still haven’t received my order and now the shop is closed up. Locked out by landlord and head office says they can’t do much as store is franchised.”

Yet another eviction notice.

The companies were directed by married couple Elizabeth and Brett Sargent.

Mr Sargent is an ex-footballer who played for the Cronulla-Sutherland Sharks in the 2000s.

Both their mobile numbers were disconnected. News.com.au attempted to contact Mr Sargent for comment via social media.

Gemma has also said Totally Workwear’s head office knew the franchise stores were on their last legs.

“When we were all contacting head office, they said they’re scripting something to tell the constant stream of (angry) customers,” Gemma said.

“Even they (head office) weren’t supplying the franchises, clearly they knew something was wrong.”

She said they stopped providing bags and socks.

“We were very well known. It’s very disheartening,” Gemma said. “Surely when you’ve got a franchise, you’re paying advertising funds to trade under their name.”

Totally Workwear’s head office was contacted for comment.

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