Michael Hill is the latest retailer to close its Australian stores amid the fallout from COVID-19.
Initially only suspending its store network in Canada, the business released an updated announcement on March 24 stating that its Australian and New Zealand stores will follow suit.
Michael Hill operates 175 stores in Australia, 54 stores in New Zealand and 88 stores in Canada and employees 2,400 people across its entire business.
In the last two weeks the business has witnessed a significant decrease in footfall in all of its markets, impacting sales.
In the wake of the store closures, Michael Hill has also stood down team members in all markets where store operations have been suspended.
Those team members have access to leave entitlements while government support schemes are assessed.
The business is also set to assess its corporate support centre with a view to reduce costs. This review will ensure that the business has the right mix of roles to support it through the next few months.
The retailer has also acted to defer payment obligations where possible and is discussing rent relief with landlords in all disrupted markets.
Michael Hill has also stated that all aspects of working capital and cashflow are being reviewed including inventory levels.
The business reports that it is confident it has sufficient inventory levels to meet likely demand.
Anticipating further interruptions to trade in all of its markets, the Michael Hill Board has also decided to defer payment of the interim dividend for six months. This decision will be reviewed again prior to 30 September.
Michael Hill chair Emma Hill said that the business will support its team members through this period.
"The Board and management team have acted swiftly today following the extraordinary circumstances that are impacting the Australian and New Zealand retail markets.
"Whilst it is clear that the suspension of our store networks is necessary for the safety and wellbeing of our people and our customers – we know also that this will be a time of great uncertainty for them too, and we are doing our best to provide them with the support that they need through this difficult time," she said.
Michael Hill CEO Daniel Bracken said that the business is working to adjust its costs to match the reduced consumer demand.
"During these challenging times the health and safety of our people and customers are foremost in our minds.
"The Board and management team are confident that the business will be able to continue to work constructively with all of its stakeholders to navigate the uncertainties presented by the COVID‐19 public health crisis.
"Whilst there remain many uncertainties about the potential impact and duration of the crisis, we are focused on taking all necessary actions to reduce our costs and cash outflows so that they better match the very subdued consumer demand in all our markets," he said.
The business' online store and deliveries will not be impacted and will continue to trade as normal.
Michael Hill's support teams have been expanded to assist with online purchasing.