Staff sacked by text message after all Riot Art & Craft stores close

Owners of retail chain Riot Art & Craft have closed down all of its 56 stores after the company went into liquidation last week.

Angry staff members said they were given no notice the stores were shutting down and were told via text message that they had lost their jobs last Monday evening.

"All stores are closed as of today. You are not required to be at work tomorrow," Riot Art & Craft director Michael Kurc wrote in the text message to staff.

"The liquidator will be in touch with you regarding your entitlements. A massive thank you to everyone for all your years of service."

Nine.com.au understands the number of staff stood down as a result of the store closures include 140 permanent staff and about 160 casual staff.

Former employees said the closures came after weeks of working in almost empty stores while head office led them to believe replacement stock was on its way.

Sophie Newcome, who had been working at the Whitford store in WA for more than two years, said the text message came as a shock. 

"They kept reassuring us, even the week before the director actually sent us an email, saying stock was on its way," she said.

"The thing that makes me most angry is that for the past few weeks we have been going in to work like normal, expecting to get paid, but we weren't.

"That's after the last fortnight of standing in what was almost an empty store telling customers that stock was coming in this week."

In Sydney, Burwood store manager Andrew Wilkinson – who worked for the company for five years - said he had also been told nothing about stores potentially closing down.

However, the lack of stock in the store had him concerned.

"I basically started telling my casuals to try getting Jobseeker or apply for other jobs because I was just getting no answers," he said.

The company behind Riot Art & Craft - SLKALT Pty Ltd - had been running for 46 years before its liquidation last Monday.

Nine.com.au understands the online side of Riot Art & Craft's business has been sold and will continue to trade under the same name.

When approached for comment, Mr Kurc, said it was now in the hands of the liquidator.

"Honestly, after 46 years in business it's been very traumatic closing doors and beyond that it's out of my hands, it's with the liquidator," he said.

Insolvency firm Dye & Co have been appointed liquidators and director Nicholas Giasoumi told nine.com.au the 140 permanent staff members were owed about $3.5 million in entitlements.

There were about 100 other unsecured creditors, mainly landlords, who were owed about $8.5 million, he added.

Former staff would be eligible for financial assistance under the government's Fair Entitlement Guarantee Act, Mr Giasoumi said.

"We have sent a notification to the staff in relation to making a claim from the government under the Fair Entitlement Guarantee Act in respect to their wages and other entitlements," Mr Giasoumi said.

Contact reporter Emily McPherson at emcpherson.com.au.