National brawl puts Gympie Jay Jays future under a cloud
THE future of Gympie’s Jay Jays stores got murkier yesterday with parent company Premier Retail threatening to shut 350 of its shops across Australia and New Zealand in a rent battle.
The company revealed at its full-year results meeting it will not hesitate to shut doors if landlords are unwilling to renegotiate rental prices in the wake of the pandemic.
Premier owns chains including Jay Jays, Smiggle, Just Jeans and Peter Alexander.
The company has asked to comment on the future of Gympie’s Jay Jays store in Mary St.
The news came as the company recorded a 30 per cent jump in net profit, bringing in $137.8 million.
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Before interest and tax it earned $187.2 million.
This includes an $8.7 “channel optimisation” expense tied to the possible closure of 350 of its 1040 stores unless landlords do not adjust rents to address the huge shift in shopping behaviour.
More than 70 per cent of the companies stores across the two countries are on holdover, meaning they could b closed without having to break leases and incur large costs.