After announcing a comprehensive review in January, Michael Hill International has now announced plans to close the majority of its Emma & Roe stores.
Jewellery chain Michael Hill International has announced it will close almost 80 percent of its Emma & Roe stores by 30 June. The first Emma & Roe boutique was opened in 2014 and as at December 2017, the company reported 340 Michael Hill and Emma & Roe stores in Australia, New Zealand, Canada and the United States.
Michael Hill Jewellers will close 24 stores by the end of this financial year with an estimated cost of up to $7.9 million, taking into account employee severance and lease termination. There are only six Emma & Roe stores that will remain as part of its plan to service the demi-fine jewellery segment.
In its market update to the ASX and NSX, it announced that it has negotiated non-binding in-principle lease exit terms with most landlords and will now proceed to negotiate binding formal documentation. The company is “well progressed” in negotiations with the remaining few landlords and will be “working expediently” to finalise those negotiations and then proceed to formal documentation. Emma & Roe employees will either be moved to Michael Hill stores or otherwise offered redundancy packages.
In January, the company announced the complete exit of its loss-making retail operations in the US. The negotiations for the exit of these nine operating US stores are ongoing.