Twenty Pie Face stores will close their doors, just one week after the company went into voluntary administration.
In a statement released to Inside Retail, administrator, Jirsch Sutherland, confirmed 18 company-owned stores and two franchised stores would be closed following an assessment of the company’s financial position.
The under performing stores which are closing are spread across Australia, with eight in NSW, five in Victoria, three in Queensland, and one in Western Australia, in addition to two franchised stores.
Twelve company-owned Pie Face stores will continue to trade as normal, and 39 franchises are also continuing to operate.
Sule Arnautovic, managing partner of Jirsch Sutherland, and joint administrator of the Pie Face companies said: “There has been some necessary rationalisation, and as a result of these closures, approximately 130 part time employees will have their employment terminated”.
“The closures and terminations are being made in order to preserve the ongoing business.”
News of the collapse of Pie Face came earlier this week, and followed an announcement in September that Pie Face would be driving an Asian expansion, with 100 stores in South Korea, and 40 in the Philippines, with the first expected to open in the first quarter of 2015.
The push into Asia was said to be part of a three pronged growth strategy; Australian domestic franchising, Australian domestic wholesaling, and international expansion, under new MD and former Brumby’s chief, Kevin Waite, who was appointed to the role in June.
There has been no confirmation yet as to the future of Pie Face’s international stores.