Glue Store is being wound down across Australia, with owner Accent Group confirming it will shut or sell the final 16 stores by the end of the financial year after the chain delivered an $8.4 million first-half loss that included closure provisions.
The decision draws a hard line under a multi-year drag on earnings for the youth-fashion banner, which has steadily reduced its footprint as costs climbed and sales momentum failed to recover. Accent said the business will be “wound down or sold,” and the remaining locations are expected to be transitioned or closed as the group exits the Glue format entirely.
Losses accelerate the exit
In the first half, Glue recorded an EBIT loss of $8.4 million, with the figure capturing the cost of closing stores and preparing the brand for a final wind-down. The chain had already been in retreat: Accent previously flagged a round of closures in mid-2024, shutting 17 underperforming sites as it looked to stem losses and reset the store network.
This time, the strategy is decisive. Rather than running a smaller footprint, Accent is moving to remove the banner from its portfolio and redirect capital, leases, and management focus toward formats the group believes can scale with stronger returns.
A pivot toward global brands and higher-conviction formats
Accent’s announcement positions the Glue exit as part of a broader portfolio shift toward internationally recognised retail concepts and performance-led categories. The group has been rolling out Sports Direct in Australia after opening its first store in Victoria in November, and it has indicated discussions around additional sites with a longer-term ambition measured in dozens of stores over the coming years.
Accent has also expanded brand-led retail strategies through newer concepts, including Lacoste and HOKA stores, aiming to capture demand in premium casualwear and technical footwear while reducing reliance on a multi-brand streetwear model that has struggled to generate consistent profit.
Accent’s bigger business grows, margins tighten
The closure call lands alongside an earnings picture that is improving at the top line but under pressure at the bottom line. Accent reported revenue of $816.9 million, up about 5% from a year earlier, while after-tax profit fell 40% to $28.1 million as higher operating costs weighed on performance.
Within the wider group, wholesale momentum has been a bright spot, with wholesale sales up 9.4% in the first half, supported by brands including HOKA and UGG. Accent also declared an interim dividend of 3.25 cents per share, reinforcing that the group is prioritising cash discipline even as it absorbs the cost of restructuring.
Why investors cheered the move
Markets often reward clarity when a loss-making unit is removed from the mix. Accent shares jumped sharply following the announcement, reflecting a view that the Glue exit reduces earnings volatility and frees capacity for higher-return growth. The reaction also reflects confidence in the company’s push into global retail formats and brand-led stores, which can offer cleaner merchandising, tighter inventory control, and more predictable store economics.
Accent has described recent trading as challenging across the sector, particularly through the Black Friday and Christmas period, as consumers became more value-conscious and discretionary spending softened. Against that backdrop, exiting a persistent loss-maker can be read as a move to protect group margins and simplify execution.
Jobs and store outcomes remain unclear
Accent has not specified how many roles will be affected by the closure or sale process. Outcomes will likely vary by location, depending on lease terms, buyer interest, and whether some sites are converted into other Accent formats. The group operates close to 900 physical and online stores across multiple banners, which may allow redeployment in some cases, but the scale of the change at Glue leaves staff uncertainty in the near term.
A long-running name disappears from Australian malls
Glue Store was founded in 1998 and later acquired by Accent Group in 2021. The chain built a loyal following with a multi-brand mix anchored by globally recognised labels and a streetwear-forward identity. The final wind-down marks another step in the reshaping of mall fashion retail, where brand-led stores, performance footwear, and global concepts are increasingly outcompeting traditional multi-brand chains.
Accent’s latest update to investors is available via its official ASX announcements and investor information page.
