Lincraft Closes All Stores in NZ & Australia: 300 Jobs Impacted After 80-Year Legacy

Lincraft, New Zealand and Australia’s long-standing fabric and craft retailer, has announced the closure of all its physical stores across both countries, affecting more than 300 jobs and marking the end of an 80-year presence in the market. The decision, described by company officials as “extremely difficult,” accelerates a shift toward a fully digital business model, according to multiple reports from New Zealand and Australian news outlets.

The company will shut down more than 50 stores in New Zealand and Australia, leaving no brick-and-mortar locations operational. Employees, including store staff and corporate roles, will be impacted, though Lincraft has not yet disclosed a full timeline for closures or severance details. The move follows years of declining foot traffic and rising operational costs, industry sources say.

Why is Lincraft closing its stores after 80 years?
The decision stems from a strategic pivot to e-commerce, a trend accelerating among traditional retailers facing pressure from online competitors. Lincraft’s shift aligns with broader industry trends, including the collapse of other physical craft retailers in the region. In 2025, for example, rival retailer Spotlight Australia filed for administration after struggling with similar challenges, though Lincraft’s scale—with a history dating back to 1946—makes its closure particularly notable.

How many jobs are at risk, and what support is being offered?
Lincraft has confirmed that more than 300 roles will be affected, including store staff and corporate employees. While the company has not released a detailed job-loss breakdown, industry analysts suggest the majority of layoffs will occur in New Zealand, where Lincraft has operated the largest number of stores. A spokesperson for the company told the NZ Herald the decision was made after “extensive consultation” with employees, though no formal severance package details have been publicly confirmed.

What happens next for Lincraft’s digital transition?
The retailer plans to consolidate its operations into an online-only model, leveraging its existing e-commerce platform. Lincraft’s website will remain operational, with inventory and customer service transitioning to digital channels. The company has not specified whether it will retain any warehouse or fulfillment roles, though industry observers note that such transitions often require a smaller but specialized workforce.

How does this compare to other retail collapses in the region?
Lincraft’s closure follows a pattern seen with other traditional retailers in New Zealand and Australia. In 2024, Myer Australia entered voluntary administration, citing unsustainable debt and shifting consumer habits. Similarly, Spotlight Australia’s administration in 2025 highlighted the struggles of physical retailers in the face of e-commerce dominance. Lincraft’s move, however, stands out due to its long-standing presence and the scale of its store network.

What impact will this have on local craft communities?
The loss of Lincraft’s physical stores may leave gaps in access to craft supplies for hobbyists and small businesses, particularly in regional areas where online shopping is less convenient. Some industry groups have already expressed concerns about the broader impact on local retail ecosystems. A spokesperson for the New Zealand Retail Association told 1News that the closure underscores the need for “adaptive strategies” in an evolving retail landscape.

Key questions remain unanswered
While Lincraft’s official statements provide clarity on the store closures, critical details—such as the exact number of affected employees, severance terms, and the timeline for digital transition—remain unclear. The company has not yet responded to requests for further comment from business publications. Industry analysts suggest that the lack of transparency may reflect ongoing internal discussions about restructuring.

For now, customers and employees alike are left navigating the fallout of a decision that reshapes a retail landscape built on decades of tradition.