Popular jewellery store Michael Hill stands down its entire workforce and closes indefinitely due to the coronavirus pandemic
- Michael Hill has closed its Australian stores and stood down its entire work force
- Company says the government’s social distancing rules interfere with business
- New Zealand and Canadian stores have also shut- online business remains open
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Popular jewellery chain Michael Hill has announced its entire workforce will be stood down and its stores will close indefinitely due to the coronavirus pandemic.
Last week, the Australian government implemented social distancing guidelines recommending people remain 1.5 metres away from others to curb the spread of the deadly illness sweeping the globe.
In a statement to the New Zealand stock exchange, the jeweller said the Federal Government’s new social distancing rules do not align with how the company runs its daily business operations.
Jewellery chain Michael Hill has announced its Australian stores will close indefinitely due to government coronavirus measures impacting day-to-day business conduct. Pictured is the Bourke Street Mall outlet in central Melbourne in February 2017
The company said Australians workers will be granted access to leave entitlements, ABC News reports.
Operations throughout its New Zealand and Canadian stores have also been suspended amid the global virus crisis, but its online store remains open.
Michael Hill will defer payment of an interim dividend.
The Brisbane-based chain has around 2600 employees spread across more than 300 stores throughout Canada, Australia, and New Zealand.
In July last year, the firm admitted it had underpaid Australian staff by up to $25 million through errors in applying the retail award.
The news comes as fashion and swimwear brand Tigerlily announced it had entered voluntary administration.
The chain, which has 30 stores across the country and global sales via the online store, appointed administrators from KordaMentha on Monday.
Despite recording the annual sales of around $35million, a statement released on Monday cited COVID-19 as being a key reason for the decision.
The swimwear giant was founded in 2000 by model Jodhi Meares, a former wife of billionaire James Packer, and has been sold in David Jones and other prominent Australian retailers.
Public spaces across the country have been deserted as the government enforces tough social measures to reduce the spread of the coronavirus. Pictured is Westfield Paramatta on March 19, 2020