Kathmandu will shut down 175 stores after falling victim to the coronavirus pandemic – leaving 1,300 employees out of work.
The retailer, which also owns Rip Curl, announced it would close all of its stores across Australia on Friday.
Staff will be stood down for four weeks without pay. Senior executives will see their salaries slashed by 20 per cent, ABC reported.
The brand’s New Zealand stores have already closed after the country went into a four-week lockdown on Wednesday night.
The retailer will continue operate online and its head office staff will work from home.
The move comes as stricter social distancing rules are implemented to slow the spread of the deadly coronavirus.
Kathmandu will shut down 175 stores and lay off 1,300 employees after falling victim to the coronavirus pandemic
The retailer, which also owns Rip Curl, announced it would close all of its stores across Australia on Friday
Australia currently has 3,050 cases, 13 people have died from the illness.
Australians are being urged to stay at home if they can, and only leave their houses if it is essential.
The restrictions have seen a number of businesses close, including pubs and gyms.
Cafes and restaurants are only allowed to offer a takeaway service.
Thousands of Australians have already been left without work as a result of the changes.
Thousands of hospitality workers were out of work from Monday when the prime minister announced the new measures (pictured: People lining up outside Centrelink this week)
Thousands more jobs are expected to be lost as a result of the pandemic (Pictured: A Centrelink office in Melbourne)
Centrelink offices have been flooded with desperate Aussies hoping to get the job seeker benefit.
The government has been working to soften the blow to the economy, pledging to support workers who lose their jobs.
Scott Morrison announced an extra $66billion worth of spending on Sunday, bringing the total survival package to $189billion – or 10 percent of Australia’s GDP.
A series of bills was approved on Monday night, with two packages worth $17.6billion and $66billion at the heart of the Morrison government’s response.
Restaurants on Melbourne’s popular Chapel Street have been forced to resort to takeaway services only, in light of the new restrictions
In separate legislation, the government set aside a further $40billion for urgent and unforeseen spending associated with the pandemic, likely to cause a recession.
CORONAVIRUS CASES IN AUSTRALIA: 3,050
New South Wales: 1,405
Western Australia: 231
South Australia: 235
Australian Capital Territory: 53
Northern Territory: 12
TOTAL CASES: 3,050
The government will no longer need legislation to make changes to welfare settings after passing an amendment to the package, giving the social services minister unprecedented powers.
The money is to help businesses survive the shutdown, and to help people buy food and pay their bills through an extended period when they might be unable to work due to quarantines and lockdowns.
It includes wage subsidies so businesses can keep staff on the payroll even when money is not coming in, and early superannuation access for people struggling to make ends meet. A number of welfare payments almost doubled.
Banks have also offered a six-month repayment holiday for mortgage holders.
More to come