An insider has revealed that the now-defunct retail chain Glue had been grappling with internal crises for years, plagued by excessive stock, high operational costs, and a disheartened workforce earning minimum wage. The revelation comes after the youth fashion retailer’s parent company, Accent Group, announced on Wednesday that it would shutter all 16 remaining stores by the end of the financial year, following a staggering $8 million drop in profits.
Accent Group acquired Glue for a mere $13 million in 2021, a stark contrast to the $60 million paid for its direct competitor, General Pants, by Alquemie Group the following year. At the time of acquisition, Glue boasted 21 stores across Australia and featured popular brands such as Abrand, Nike, Nude Lucy, Thrills, Ksubi, New Balance, Adidas, Deus, and Birkenstock.
Internal Struggles and Industry Pressures
A store insider, who requested anonymity, expressed little surprise at the recent announcement, aligning with industry analysts who attribute the collapse to rising labor costs in Australia. The insider described a high staff turnover and low morale, exacerbated by the company’s aggressive cost-cutting measures.
‘Glue was struggling before it was sold, but then Accent came in and they’ve been savage with it,’ the insider said. ‘They cut resources and they kept doing it until it didn’t make sense, and then wondered why it wasn’t working.’
Despite these cuts, the insider noted that Accent Group imposed significant pressure on the remaining staff, tasking them with managing large stores filled with high volumes of stock, all while most employees were on minimum wage. This led to burnout and inadequate training for new hires, further hampering store operations.
Economic Context and Consumer Behavior
Gene Tunny, director of Brisbane-based consultancy Adept Economics, previously highlighted the strain high wages have placed on numerous businesses. Simultaneously, consumers have been tightening their belts due to the rising cost of living, contributing to declining sales.
‘You’ve then got people leaving because expectations are so high that they’re burning out, and then new people come in and they aren’t trained properly,’ the insider added. ‘It made sense to Accent because labor costs are so high, but it means people aren’t being served in stores so sales aren’t being made.’
Glue’s challenges are emblematic of broader retail industry trends, where companies are forced to balance operational costs with consumer expectations in a fluctuating economic landscape.
Accent Group’s Strategic Shift
Founded in 1998 by Australian retail entrepreneur Hilton Seskin, Glue was acquired by Accent Group from JD Sports Fashion in 2021. The parent company, which operates several major retail chains including The Athlete’s Foot, Hype DC, Platypus Shoes, Skechers, and Vans, is now pivoting its strategy.
Accent Group plans to focus on global brands, having secured exclusive local distribution rights for Lacoste in 2024. The company is set to expand its footprint by opening 40 new stores across its other brands before the end of the financial year, up from 27. This includes the Sports Direct brand, which launched its first Melbourne store in November, with three more openings scheduled over the next year.
Future Prospects and Industry Implications
Accent Group chair Lawrence Myers acknowledged the challenging retail environment since the end of 2025 but expressed optimism about the company’s growth trajectory.
‘The board is encouraged by the early performance of Sports Direct following its successful launch, as well as the progress made across the broader growth plan,’ Myers stated.
The closure of Glue underscores the volatile nature of the retail sector, where adaptability and strategic foresight are crucial for survival. As Accent Group repositions itself, the industry will be watching closely to see how these changes impact its market presence and financial health.
