One of the Reject Shop’s 20 Tasmanian outlets set to go

The Reject Shop has announced it is closing one of its Tasmanian stores.

The Reject Shop will close its unprofitable Deloraine store in the middle of the year. Picture: AAP

THE Reject Shop has announced it is closing one of its Tasmanian stores but says its other 19 Tasmanian outlets are safe for now.

The discount chain said its Deloraine store was scheduled for closure in mid-July and staff had been offered the opportunity to work at other stores — the nearest in Launceston.

“The store is not profitable and we have been unable to obtain a commercially acceptable negotiation with the landlord to keep the store operating,” a Reject Shop spokesman said.

“At this stage there are no other store closures in Tasmania scheduled in the medium term.”

The Reject Shop opened its 350th Australian store in 2017.

But in October last year the chain slashed its profit forecast, triggering a 44 per cent slump in its share price.

In its last annual report the company said all stores needed to either achieve sales to enable sound economic outcomes or be closed.

“We consider the vast majority of our stores to be sustainable, however store rents are, and will remain, a significant component of our expenses and operating cash flows,” the report said.

“Accordingly, where sustainable sales and rental outcomes cannot be achieved, alternative action will occur.”

The Reject Shop has outlets at Hobart, Glenorchy, Kingston, Prospect Vale, Burnie, Rosny Park, Devonport, Legana, Mowbray, Sorell, Bridgewater, Claremont, St Helens, Port Sorell, New Norfolk, Latrobe, Ulverstone, Scottsdale and Smithton.