Nike franchisee AF1 collapses, shutting seven Sydney stores

John Morgan of BCR Advisory has been appointed liquidator of AF1 Pty Ltd and six related entities—AF1 (Bondi) Pty Ltd, AF1 (Sydney) Pty Ltd, AF1 (Chatswood) Pty Ltd, AF1 (Castle Hill) Pty Ltd, AF1 (Warringah) Pty Ltd, and AF1 (Burwood) Pty Ltd—operators of seven Nike-branded retail stores across Sydney.

The AF1 group, which had managed Nike stores in Australia since 2006, employing approximately 115 staff at the time of its collapse on 26 September 2025, with trading ceasing immediately.

Morgan confirmed that all employee roles have been terminated and that eligible entitlements—including unpaid wages, annual leave, and redundancy—will be paid through the Commonwealth’s Fair Entitlements Guarantee (FEG) scheme.

The collapse also renders all customer gift vouchers and store credits void, as they constitute unsecured claims against the franchisee. Nike’s Australian operations remain unaffected.

AF1’s closure marks the end of a nearly two-decade relationship between the franchisee and the global sportswear brand. The liquidator said his team is assessing the group’s financial position and investigating the circumstances leading to the collapse, with an initial report to creditors expected in the coming weeks.