An insider has revealed that the now-collapsed retail chain Glue had been grappling with internal crises for years, characterized by excessive inventory, high operational costs, and a demoralized workforce earning minimum wage. The revelation comes after the youth fashion retailer’s parent company, Accent Group, announced on Wednesday that all 16 remaining stores would close by the end of the financial year, following an $8 million plunge in profits.
Accent Group acquired Glue in 2021 for a relatively modest $13 million, a stark contrast to the $60 million sale of its direct competitor, General Pants, to Alquemie Group the following year. At the time of its acquisition, Glue operated 21 stores across Australia, offering popular brands such as Abrand, Nike, Nude Lucy, Thrills, Ksubi, New Balance, Adidas, Deus, and Birkenstock.
Inside the Struggles of Glue
Speaking anonymously, a store insider expressed no surprise at the recent announcement, aligning with industry analysts who attributed the collapse to rising labor costs in Australia. The insider noted that staff turnover was high and morale was low, exacerbated by Accent’s aggressive cost-cutting measures.
“Glue was struggling before it was sold, but then Accent came in and they’ve been savage with it,” they said. “They cut resources and they kept doing it until it didn’t make sense, and then wondered why it wasn’t working.”
Despite the reduction in resources, the source explained that Accent placed significant pressure on the remaining staff, expecting them to manage large stores with substantial stock volumes, while most retail staff were earning minimum wage.
“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,” they said. “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.”
Economic Pressures and Market Dynamics
Gene Tunny, director of Brisbane-based consultancy Adept Economics, previously highlighted that high wages have placed pressure on numerous businesses. Meanwhile, consumer spending has declined due to the rising cost of living, further straining retail operations like Glue.
Founded in 1998 by Australian retail entrepreneur Hilton Seskin, Glue was acquired by Accent Group from JD Sports Fashion in 2021. Accent Group also owns and operates several major retail chains, including The Athlete’s Foot, Hype DC, Platypus Shoes, Skechers, and Vans.
Accent Group’s Strategic Shift
Looking ahead, it is understood that Accent Group plans to narrow its focus on global brands, having secured the exclusive local distribution rights for Lacoste in 2024. The company intends to expand its footprint by opening 40 new stores across its other brands before the end of the financial year, up from the current 27. This includes the Sports Direct brand, which launched its first Melbourne store in November, with three additional locations planned for the next year.
Accent Group chair Lawrence Myers commented on the company’s strategic direction, stating that the business had “navigated a challenging retail environment” since the end of 2025.
“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,” he said.
The collapse of Glue serves as a cautionary tale of the challenges facing the retail industry, highlighting the delicate balance between cost management and maintaining workforce morale. As Accent Group recalibrates its strategy, the retail landscape continues to evolve, with consumer behavior and economic conditions playing pivotal roles in shaping future outcomes.
