Premier Investments extends retail store closures

Premier has extended its shutdown of chains such as Just Jeans and Smiggle as COVID-19 restrictions cripple retail.

designed Peter Alexander visits a Peter Alexander store in Sydney.

Premier Investments says it will keep the doors of its retail chains closed longer than first expected, until at least mid-May, as coronavirus shutdowns cripple the industry.

The owner of retail chains Dotti, Just Jeans, Portmans, Smiggle and Peter Alexander said it will keep physical stores closed until May 11, following federal and state government decisions to extend the COVID-19 lockdown.

Premier, which is headed by billionaire Solomon Lew, had previously hoped stores would reopen on April 22. Store closures were initially implemented on March 26, with 9000 workers stood down.

Meanwhile it would continue not to pay rent for its stores.

In a statement to the ASX, Premier said it would use the fact that close to 70 per cent of its leases with retail landlords in Australia and New Zealand are set to expire during 2020 as an opportunity to negotiate better tenancy deals and rental relief.

“These extraordinary circumstances provide Premier with maximum flexibility,” the company said.

“Premier intends to continue not paying any rent globally for the duration of the shutdown.”

Shopping mall landlords had previously hit back at rental relief claims following the shutdown in late March, as lease books continue to face downward pressure.

Premier said online trading had been strong across all its seven retail brands during the store closures. Online trading and deliveries in New Zealand are set to reopen on April 28, when the government drops its alert level from four to three.

“Our decision to temporarily close our retail stores is consistent with the clear message reiterated by the Prime Minister that the population should only leave the house when it is absolutely necessary to go out,” the company said.

“While our seven brands do sell much-loved discretionary products, it is irrefutable that we are not an essential retailer.”

Premier has also confirmed it is taking urgent steps to ensure its stood down employees are able to access the Australian government’s JobKeeper program and the New Zealand government’s wage subsidy scheme.