Background: Glue Store is an Australian fashion retailer which was founded in 1998. For many teens, it was once the go-to spot to spend their casual job pay cheque. Whether it was a fresh pair of Vans, a Stüssy tee, or a statement denim jacket, Glue was a staple of youth fashion retail.

What happened: At its peak, Glue Store grew to around 30 stores across Australia. In 2021, Accent Group, the retail giant behind brands like Hype DC, Stylerunner, and The Athlete's Foot acquired Glue Store for $13 million. It was hoping to scale it alongside its growing athleisure portfolio. But that strategy didn't quite work out. In fact, Glue Store posted an $8.4 million loss earlier this year.

What else: Last week, all Glue Store locations and its online store have permanently closed. While the decision had reportedly been made months earlier, June became the final reckoning for Glue... like it has for many other retailers around this time of year too.

What's the key learning?

💡Retail collapses often coincide with the end of financial year. Most retailers in Australia operate on a June 30 financial year - which is when boards and executives closely assess annual performance and decide whether struggling businesses can realistically survive another year.    

💡 If losses have become too large to recover from, many retailers choose to shut down before the new financial year begins to avoid taking on even more costs. Long-standing retailers like Barbeques Galore and Lincraft have announced store closures towards the end of the financial year.

💡 Right now, businesses are facing pressure of rising rents, three RBA rate hikes, and higher petrol costs. At the same time, Australia's household savings rate has fallen from 7% to 6.2%, so it's likely that Glue store isn't the only retailer struggling right now.