Six Wagga clothing retailers are at risk of closure after Australasian brand, Speciality Fashion Group, announced 300 stores would be cut over the next three years.
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The announcement follows a massive shareholder revolt during Speciality Fashion Group’s annual meeting on Tuesday.
A majority of shareholders (51 per cent) voted against the annual remuneration report – twice the amount required to put the board at risk of being split should a protest vote occur again next year.
Rivers, City Chic, Autograph, Katies, Crossroads and Millers fall under the Specialty Fashion Group blanket and currently occupy central Wagga locations in either Sturt Mall or Wagga Marketplace.
However, few Wagga retailers have any indication as to whether their future is secure or not.
A spokesperson from City Chic Wagga said their five staff members had not been formally told of the announcement.
A spokesperson from Rivers Wagga confirmed staff had been informed of the announcement however the spokesperson was unable to comment on the store’s future in Sturt Mall.
Store managers from from Autograph, Katies, Crossroads and Millers were unable to provide further comment at this time.
Specialty Fashion CEO, Gary Perlstein, resigned last week after 14 years in the top job and acknowledged the cuts were driven by deep shareholder dissatisfaction.
"The company has outlined a transformation program that's accelerating the closure of underperforming stores and its other operational initiatives that were explained today, and were well received," he said.
"And we've got a strong plan vis-a-vis driving continual improvement in the omni channel experience."
Company chairman Anne McDonald said the company's growth strategy was to focus on e-commerce and expanding the wholesale business of the City Chic brand.
Ms McDonald said the company had already cut costs by $3.6 million in the first quarter by thinning out its support office.
