In order to focus on is namesake brand, Michael Hill has announced plans for the closure of its Emma and Roe physical stores, and online business.
The international chain will be closing six remaining stores, following the decision to pull out completely of the US earlier this year after 10 years in the market.
The move, as stated by the Brisbane based company, will allow it to focus on its core market as its namesake stores account for 95 percent of revenue.
“Following a strategic review, we have decided that a singular focus on the Michael Hill brand will best position us to deliver a stronger customer proposition and financial results,” chief executive Phil Taylor said.
Michael Hill, which launched the Emma and Roe brand in 2014, said it will shortly begin negotiations with landlords to agree the terms of closure for the remaining six stores.
The company said it estimates one-off cash costs of exiting the six remaining Emma and Roe stores for lease termination and employee severance will total no more than $3.1 million.
The change in direction comes less than four months after Michael Hill said it would close 24 of its 30 Emma Roe-branded stores and reposition the remaining six in the so-called demi-fine jewellery category.
The store fit-out costs for all 30 Emma and Roe stores were fully impaired at December 31, 2017, on the basis all stores would either close or be rebranded, the company said.