The Nike store on Military Road has closed its doors permanently following the collapse of AF-1, the franchisee that operated the Neutral Bay outlet along with six other Nike stores across Sydney.
The franchisee, which had been operating for nearly two decades, has been forced into liquidation after losing its licensing agreement with Nike, leaving as many as 115 workers without jobs.
The Neutral Bay store, located at 185 Military Road on the corner of Rangers Road, was one of seven AF-1-operated Nike outlets affected by the sudden closure. Other stores included those at Pitt Street in the CBD, Bondi, Chatswood, Burwood, Warringah and Castle Hill.
Liquidator John Morgan from BCR Advisory has been appointed to manage the wind-up process and confirmed that eligible employee entitlements, including unpaid annual leave, wages and redundancy payments, will be covered under the Commonwealth Government’s Fair Entitlements Guarantee scheme.
The liquidator’s office has provided information to affected employees about how to apply for compensation through the federal funding program.
For customers holding gift certificates or store credits for the affected stores, the news is disappointing. These will not be honoured, as they represent unsecured claims against the franchisee.
Morgan stated that his office is working with Nike and landlords to arrange an orderly closedown of the shops and, where appropriate, facilitate the return of goods to Nike under existing supply arrangements.
A Nike spokesperson confirmed that agreements with AF-1 had ended “effective immediately” and said the company appreciated the partnership. Nike added it looks forward to continuing to serve consumers through its growing network of Nike stores, multibrand retail partners and online platform.
Other Sydney Nike stores not managed by AF-1 will continue to operate.
The closures add to a challenging period for Australian retail, with several major brands experiencing difficulties in recent times.
Published 1-October-2025
