Shoe retailer Betts has appointed an administrator to accelerate the closure of more than a dozen uneconomical stores nationwide in pursuit of returning the dynasty to profitability.
The 133-year-old family footwear-retailer-turned-women’s-wear brand has voluntarily called in Pitcher Partners to close more struggling stores and restructure the business.
The decision was informed by a shift towards online shopping, a tough economic environment, rising cost of living and growing cash pressure in the business.
Betts has a total of 34 stores nationwide and it’s understood that up to 17 of those locations will be earmarked for closure under the restructure.
Speaking to Business News in January, Betts managing director Michael Breckler said there were about 20 profitable stores, with the Karrinyup store one of the stronger locations.
Betts’ other Western Australian locations are Hay Street, Joondalup, Whitfords, Carousel, Booragoon, Cockburn Gateway and Mandurah.
Pitcher Partners’ Lindsay Bainbridge said the company had been slowly closing unprofitable and marginal retail outlets over the past two years.
He said the group would now move to shut more of its 34 stores and undertake a restructure that would prepare the business for future success.
“We are working closely with the management to review the company with the view of restructuring and preparing for a bright future,” Mr Bainbridge said.
“Australians grew up with Betts shoes, they know and love the brand, and we believe it has a strong outlook as a more streamlined operation.”
Betts Group is coming off the back of two years of consecutive losses, largely driven by the group of retail stores bleeding money or breaking even across the country.
Mr Breckler, a descendant of the original Betts founding family, has been reshaping the majority-owned business’ strategy since taking the helm in 2024.
He’s been closing underperforming stores and prioritising top stores and e-commerce and has exited men’s and children’s footwear to focus on its core market: women.
Betts had about 65 stores when Mr Breckler assumed the helm.
At its peak, the group had 220 bricks-and-mortar stores in 2015 through the brands Betts, AirFlex, Betts Kids, and Zu Shoes.
On Wednesday, Mr Breckler said the rebrand had driven online sales and in-store performance but the retail landscape was increasingly challenging.
“[But] a tough economic environment, rising cost of living and growing cash pressure in the business has meant we’ve run out of time to completely execute the restructure strategy on our own,” he said.
“It is always difficult to close stores but we have been clear over several years that some retail environments are simply not viable, and the shift towards online shopping has driven this decision.
“We remain deeply committed to the success of Betts and our people, and believe this appointment will help move us forward.”
Mr Breckler told Business News in January that returning the business to profitability - which was tipped for FY26 – required the closure of underperforming stores.
“With the FY24 loss of $3.9 million, we had about maybe 65 to 70 stores during that year, half of which would have broken even or lost,” Mr Breckler said in January.
“That’s where my strategy came in, to get rid of these as quickly as possible, because that’s what’s bleeding money.
“[Meanwhile the] website is growing incredibly and very profitable and the top 20 stores are performing really strongly and [are] very profitable.”
Betts still intends to invest in refitting select stores with a modernised, luxurious design. Meanwhile, online sales are responsible for more than 30 per cent of Betts’ revenue.
Betts posted sales revenue of $52.9 million in financial year 2025, an increase on the $51.6 million it generated in FY24.
It registered a loss of $2.2 million in FY25, an improvement on the $3.9 million loss during the previous period.
In the past year, Betts has stopped selling men’s and children’s shoes to focus on women’s fashion, which has involved a rebrand of its marketing and packaging.
It marked a significant shift for Betts, which has a history dating back to 1892, and has dominated the market for most of that time as a family shoe store.
