By ANNA USHER

Seven Nike stores across Sydney have closed with more than 100 staff members now out of work after a franchisee fell into liquidation.

The company, AF-1, managed Nike stores – including the Neutral Bay outlet – in since 2006 along with a retail consultancy, which offered training and advice for other retail businesses.

Other affected stores are Pitt St (CBD), Bondi, Chatswood, Burwood, Warringah and Castle Hill.

In a notice sent to the Australian Securities and Investments Commission (ASIC) last week, the company said it would be wound up and appointed BCR Advisory’s John Morgan as liquidator.

The stores will also no longer be honouring customers’ gift certificates and store credits, Mr Morgan added, as they represented unsecured claims against the franchisee.

In a statement, BCR Advisory told Australian Business Network that the Nike stores ceased trading immediately, with all employees’ roles being terminated.

“Eligible employee entitlements, including unpaid annual leave, wages and redundancy payments will be paid under the Commonwealth government (Fair Entitlements Guarantee) scheme,” he said.

“The liquidator’s office has provided affected employees with information about this scheme and how to apply for compensation from this Commonwealth government funding.”

Nike has indicated it will continue serving customers through its online store, its fleet of other stand-alone stores not operated by AF-1, and via multi-brand retail partners.

The company is also coordinating with landlords and suppliers as part of the winding-up process.