SOLOMON Lew’s Premier Investments has extended the temporary closure of its 900 retail stores across Australia until at least mid-May, and reaffirmed that it would not pay rent on its stores for the duration of the shutdown.
Premier, whose brands include Peter Alexander, Smiggle, Jay Jays, Just Jeans and Portmans, had announced on 26th March stores would be shut for at least a month, making similar decisions in New Zealand, the United Kingdom and Ireland.
Yesterday, it said shops will be closed until 11th May, when national cabinet’s current lockdown guidelines expire, and would continue to monitor the advice and requirements of the governments where it operates and provide further updates.
The group took its cue from last week’s federal government announcement that measures to manage COVID-19, including social distancing, public gathering and stay home directions are unlikely to change in the next four weeks.
“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.
“As the Premier of Victoria has stated, no shopping trip is worth a life. Whilst our seven brands do sell much loved discretionary products, it is irrefutable that we are not an essential retailer.”
Premier’s entire executive team have been stood down and working from home with no pay or reduced leave entitlements during the group’s shutdown, and over 9,000 staff across its global store network have also been stood down.
Lew, its combative chief executive, had previously made threats to shutter stores if landlords did not lower rents in response to hardships created by the coronavirus outbreak that pre-dated the announcement of mandatory commercial tenancy code of conduct.
Close to 70% of its Australia and New Zealand store network is already in holdover or with leases expiring in 2020.
“These extraordinary circumstances provide Premier with maximum flexibility,” it said.
“Shopping centre landlords are responsible for creating a healthy and safe environment. It is incumbent on them to demonstrate and announce the actions they are taking to ensure a healthy and safe environment for our employees and customers.
“These health and safety measures are critical to allow non-essential retailers to start trading when restrictions are eventually eased by governments.
“We will work closely with shopping centre landlords to ensure that appropriate safety measures are implemented in a timely manner.”
All seven of Premier’s brands are currently trading “strongly” online in Australia, and will trade online in New Zealand from 28th April after Prime Minister Jacinda Ardern stepped down the country’s restrictions in recent days. Premier’s stores will remain closed until at least 11th May.
