Covid-19 News Updates

Vans and Dr Martens to lose grip as footwear giant Accent Group closes 470 stores

The company that owns the Australia-New Zealand distribution rights to footwear brands like The Athlete's Foot, Hype DC, Skechers, Vans and Dr. Martens has today made the "difficult decision" to temporarily close its network of more than 470 stores.

Accent Group (ASX: AX1) - which also has the rights to sell Platypus Shoes, Merrell, CAT, Saucony, Timberland, Sperry Top-Sider, Palladium and Stance - made the call in the interests of staff health and safety.

Stores will close from 5pm on Friday 27 March for a period of four weeks, affecting almost 4,200 employees.

The company says its retail employees and the majority of support office employees will be stood down without pay for that period, but they will still accrue entitlements and may access their annual and long service leave.

The Group will continue to trade through its 18 websites and wholesale business.

"It is with a heavy heart that we have made this decision, but we believe this to be in the best interests of the health and wellbeing of our team members," says CEO Daniel Agostinelli.

"The Company intends to do everything possible to return the business to normal operations when environmental conditions normalise whilst always prioritising the safety and wellbeing of our team."

Updated at 11:03am AEDT on 26 March 2020.

Hairdresser restrictions lifted

The 30 minute per patron social distancing rule imposed on hairdressers has been lifted by the National Cabinet.

Following feedback on the rule Australia's premiers and chief ministers have decided to remove the 30 minute per customer rule but the four square metre per person rule will remain in place.

"Personal contact during the patron's visit should be minimised wherever possible," says the Federal Government.

Further, States and Territories can now provide exemptions to the 10 person attendance rule at funerals in hardship cases.

The clarifications come as Australia reports 2,431 confirmed cases of Covid-19 this morning.

There are 1029 cases in NSW, 466 in VIC, 443 in QLD, 205 in WA, 197 in SA, 44 in the ACT, 42 in TAS, and five in NT.

Victoria this morning reported its first two deaths, bringing the national death toll to 11.

Updated at 9:01AM AEDT on 26 March 2020.

White House, Senate reach deal for US$2 trillion stimulus package

The wheels are now in motion for the largest economic stimulus package in US history, after the Trump Administration and the Senate reached a deal to pump US$2 trillion (AUD$3.3 trillion) into the economy.

The Washington Post reports the breakthrough was announced at 1:30am on the Senate floor by Senate Majority Leader and Mitch McConnell (Republican), and Minority Leader Charles E. Schumer (Democrat).

"After days of intense discussion, the Senate has reached a bipartisan agreement on a historic relief package for this pandemic. ... I'm thrilled that we're finally going to deliver for the country that has been waiting for us to step up," McConnell was quoted as saying. 

The agreement follows five days of negotiations with officials from the Administration, and now the legislation is expected to pass both chambers of Congress. 

The LA Times reports a Senate vote could occur by midday on Wednesday in the US, with the House potentially following soon after.

The publication reports negotiators close to the stimulus bill claim it includes US$300 billion for small businesses, US$150 billion for local and state governments, and US$130 billion for hospitals.

The proposal equates to more than 9 per cent of US annual gross domestic product (GDP). In comparison, Australia's $189 billion stimulus package is worth around 10 per cent of our country's GDP last year. 

This proposed stimulus compares to an US$831 billion stimulus package implemented by the Obama Administration in response to the global financial crisis (GFC), more commonly known as the Great Recession in the United States. 

NSW supermarkets and pharmacies can now operate 24/7

While there may be restrictions around what you can do when you leave home, in NSW you will at least be free to choose when you shop for groceries or medicine, whether it's 3pm or 3am.

That is if supermarkets and pharmacies make the most of the state government's latest relaxation of laws to guarantee access to essential goods at all times during the Covid-19 pandemic.

Changes to the Environmental Planning and Assessment Act 1979 today enabled Planning and Public Spaces Minister Rob Stokes to issue his first order to override normal planning controls restricting hours of operation.

"These orders cut red tape so we can move quickly and decisively to ensure the health, wellbeing and safety of our community during this time," says Stokes.

"The focus of our first order is giving people flexibility to visit their local supermarket, pharmacy or corner store at any time of day if those retail premises choose to operate for extended hours.

"This means the community will have access to food, medical supplies and essential household goods whenever they need it."

He says stores will also be able to dispose of their waste at any time of day, rather than during restricted hours, to dispose of the significant and sudden increase in stock.

The order also provides greater flexibility for home-based businesses to operate at any time and expand their business as necessary.

"For those businesses operating out of home, we are facilitating more flexible operating hours and increasing the number of people working together from two to five, providing they can abide by the social distancing rules," Mr Stokes said.

"This is important as more and more people work from home and need flexible working arrangements."

Updated at 5:46pm AEDT on 25 March 2020.

Yarra Valley winery turns cellar door into grocery

With restrictions now in place for hospitality providers and public gatherings, the owner of a Yarra Valley winery is thinking outside the box to keep customers coming through the cellar door.

Normally operating a winery, restaurant and concert venue, it could have easily been a case of sour grapes for the team at Rochford Wines this week.

But owner Helmut Konecsny has risen to the occasion by converting the cellar door space into a grocer, food delivery and wine takeaway hub. 

The company says this heart-felt move was driven by compassion and determination to help keep the team employed and support the greater economy.

Equipped with essentials, customers can now purchase fresh meat, fruit, vegetables, cheese, deli items, freshly baked bread, pasta, rice, specialty items, toilet paper, sanitiser and of course, wine.

At the same location, 400 Gradi Yarra Valley will also be serving up freshly cooked pizza, pasta, hearty shared meals, sides and desserts for pickup or delivery by the so-called 'Rochford Army', a newly created in-house delivery team.

"There has never been a more important time to innovate; the focus is on trying to keep going, to keep people working and to come up with new ideas that serve the purpose of keeping people in jobs, to assist our greater community and to work through the toughest economic and personal challenges any of us will likely ever face in this lifetime," says Konecsny.

"We are a nimble and agile business, with the facility to turn some of our space into different offerings. We are a loyal, passionate family company here, and hope that this move supports our community in more ways than one."

The company will also provide discounts on its wines and offer 48-hour delivery within the greater Melbourne metro area.

Updated at 5:36pm AEDT on 25 March 2020.

ACCC allows medical tech companies to coordinate

The national competition regulator has shown a sign of goodwill to medical technology companies that will allow them to coordinate supplies and manufacturing in response to the Covid-19 pandemic.

Following a similar approach towards supermarkets, the Australian Competition and Consumer Commission (ACCC) is putting the immediate national interest first by permitting medical tech businesses to coordinate on ventilators, testing kits, personal protective equipment and other medical equipment.

Under ordinary circumstances, coordination between competitors would run the risk of collusion. 

But now members of the Medical Technology Association of Australia (MTAA) and other groups in the industry will be able to share information between each other, coordinate orders and supply requests, prioritise requests, and jointly tender to supply Covid-19 medical equipment.

This will be made possible through an interim authorisation from the ACCC.

"Our decision will help companies urgently address potential shortages or other constraints on the supply of crucial medical equipment," says ACCC Chair Rod Sims.

"This supports government efforts to ensure governments and health services are able to provide a coordinated response to the pandemic."

The move is expected to allow these companies to keep Federal Government, State and Territory Governments and relevant health agencies up to date on supply issues.

"Medical technology companies will now be able to roll out a coordinated plan for supplies of medical equipment nation-wide, which is likely to be crucial in assisting Australia's response to Covid-19," says Sims.

Updated at 5:18pm AEDT on 25 March 2020.

$5000 fines for NSW businesses that ignore Covid-19 restrictions

NSW police will now have the power to give on-the-spot fines to individuals and businesses that flout ministerial directions aimed at preventing the spread of Covid-19.

The rules relate to incoming travellers, people who have been diagnosed with the virus, mass gatherings and social distancing rules, and the closure of social gathering places.

The state's police will be able to issue Penalty Infringement Notices (PINs) of $1000 for individuals and $5000 for businesses.

This is in addition to the existing enforcement powers available to officers, which include issuing Court Attendance Notices with a maximum penalty of up to $11,000 and/or six months imprisonment for individuals.

NSW Police Commissioner Mick Fuller says the circumstances call for strong action, and police stand ready to respond.

"This health crisis is like nothing we have ever experienced, with more than 1000 cases now confirmed in NSW, and the numbers continuing to grow," Commissioner Fuller said.

"I'm encouraged that most members of the community are taking this  issue seriously and are adhering to the government advice."

However, he said it was disturbing that officers have already had to respond to dozens of reports of breaches of ministerial directions from members of the community.

"This is astounding, and incredibly disappointing, as these people are putting themselves and the wider community at an unacceptable risk," he said.

"The last thing we want to do is to have to use police powers to ensure compliance, but let me be clear we have been using them and we will continue to do so."

Minister for Police and Emergency Services David Elliott said the measures were tough but necessary to minimise the risk the pandemic poses to public safety.

"Despite the majority of people doing the right thing, we are still seeing reckless and irresponsible behaviour that endangers the lives of others, particularly to elderly and immunocompromised members of the community," Elliott said.

"The rules are clear. No more than one person should occupy a two by two metre area, and public places such as the beach and retail outlets are no exception.

"Our message to the community is simple: be vigilant, be sensible, and stay up to date with the latest health advice."

NSW Police Force last week launched operation Coronavirus to guide the organisation's response, with highly specialised officers providing practical and logistical support.

The Police Operations Centre (POC), the command location for coordinating all police activities in response to major incidents, has been made operational.

Commissioner Fuller said in addition to responding to reports of non-compliance, police had put in place a number of proactive measures to help stop the spread of the virus.

"Our officers are conducting proactive patrols in every Police Area Command and Police District across the state, to add another layer of enforcement and ensure people in public places are sticking to the rules.

"These patrols also form part of our ongoing work with retailers, to ensure calm and fairness at the checkouts.

"I want to urge the people of NSW to stay safe and follow the official government advice."

Updated at 5:05pm AEDT on 25 March 2020.

Fitness, wellness and beauty facilities take stock as Covid-19 restrictions come into play

As new social distancing measures fall into place as per the Federal Government's Covid-19 plan, businesses around the country are trying to figure out where to next.

The fitness, wellness and beauty industries have effectively been ordered to shut down immediately, with many businesses unable to offer a virtual or distance-based alternative to their physical services.

Vita Group (ASX: VTG) which operates 21 aesthetic beauty service clinics, including 13 Artisan/branded clinics, will suspended trade from Thursday 26 March.

The company says the financial impacts arising from the Federal Government's decision to shut down beauty clinics are still being assessed.

Despite the shutdown of its clinics, Vita Group says its ICT (information and communications technology) channel has been deemed an essential service by the Federal Government and remains open for business.

Vita's ICT channel includes more than 100 Telstra retail and business centres, as well as technology accessories brand Sprout.

The company's CEO and executive director Maxine Horne is disappointed but understands the government's decision and will be working to support staff through this period of indefinite suspension.

"Our focus over the next 24 hours is on supporting our team members through this difficult period, and ensuring our clients continue to receive the high levels of service they are accustomed to," says Horne.

"The Vita leadership team is proactively managing its business continuity plans in these unprecedented circumstances with the aim of placing the business in the best possible position for our long term future."

Viva stretches out online

Listed fitness company Viva Leisure (ASX: VVA) has been forced to close all of its 97 clubs around the country to follow the Government's instructions.

While there is no expected reopening date for its portfolio of fitness clubs at this time Viva has turned to non-traditional methods to keep its clients fit and healthy for the meantime.

Over the weekend Viva launched its first at-home workout app called Club Lime LMOD (LesMills on Demand).

The app offers Viva members access to 100 workouts supplied by industry leading group fitness provider LesMills International, and is now available on Android, iOS and iPadOS.

The company will soon release another at-home workout app called Club Lime Workouts on Demand with over 500 different workouts from Yoga to high intensity interval training classes.

Further, Viva's team at Hiit Republic will be running 'Home Work-In' classes on both Facebook Live and YouTube Live for members to maintain their training regime.

While the company is transitioning well into this brave new world that does not mean it has been easy for the group's staff.

Viva closed all of its facilities on Monday leading to the cancellation of all casual shifts from the time of closure (affecting around 800 staff), while non-essential permanent staff were placed on paid or unpaid leave, and 90 per cent of the group's total workforce was stood down.

"This week we face the challenging and unimaginable position to be legally required to close our clubs, together with the entire industry," says Viva Leisure CEO and managing director Harry Konstantinou.

"I am confident that Viva Leisure will come out of this temporary closure and uncertainty significantly stronger, with new opportunities and possibilities, and with a raised awareness of the importance of fitness for many more Australians."

Updated at 3:52PM AEDT on 25 March 2020.

Palaszczuk: The intention is "not to disrupt" border communities

Queensland Premier Annastacia Palaszczuk (pictured) says the state disaster coordinator "is throwing everything at this" to make the border closure with NSW happens with as little disruption as possible.

It is an issue that is of particular concern to communities living in the Tweed region, whose lives and businesses are heavily tied to the Gold Coast. 

After announcing Infrastructure Minister Cameron Dick had been put in charge of securing the state's supply chains, the Premier said the QLD-NSW border would be closed as of midnight.

"I ask people to be patient, but I also ask people if you do not need to come to Queensland, please do not come to Queensland," she said.

"In relation to those border restrictions the intention is not to disrupt those communities like the Tweed that live very close, but there are exemptions and we're hoping to get those exemptions put together as quickly as possible."

"We know that people living in the Tweed have a legitimate business here in Queensland. It's very close proximity, so we are trying to make it as easy as possible for those residents...we're getting the permit system done as quickly as possible."

State Infrastructure Minister Cameron Dick has congratulated Queensland businesses like Bundaberg Rum and Sunshine Coast sunscreen and aloe vera gel producer Concept Labs for repurposing their operations to produce ethanol for hand sanitisers.

"Queensland businesses and manufacturers have responded magnificently to this call," he said.

"I'm pleased to announce there are no fundamental shortages of supply of goods or essential household goods; we grow and process so much of our own food in Queensland, and we produce many household goods here in our state.

"What we've seen at supermarkets with empty shelves is not because of a problem in supply, it's been a problem of demand and behaviour, but that is now ebbing; that is now going back to more normal levels across Queensland, and I want to thank the retailers and supermarkets for actively managing that, particularly through self-regulating the supply of products to what people need."

He described three critical streams the department was focusing on: the supply of essential goods; the manufacture, procurement and supply of health system personnel protective equipment (PVE) as well as other health products and equipment; and support for impacted businesses and industries.

The Premier also announced the state's 470 camping areas would be closed tomorrow as part of social distancing measures to prevent the spread of Covid-19.

"This is really important - we need the message to get out. There are no school holidays, we will be having a school break," she said.

"As we know, today is going to be a tough day for a lot of other businesses that work in various industries as they will have either restrictions or will have to be closing.

"I know that no one likes to be making these decisions, but we have to do it in the interest of everybody in terms of protecting people."

The state, which now has 443 cases of the virus, has conducted 29,282 tests for Covid-19.

"This puts us as one of the highest testing states in the nation," the Premier said.

With regards to the council elections taking place in Queensland, Palaszczuk says voting is very low risk and the majority of the population has already been pre-polling.

"Of course there will be exemptions for people who are unwell and cannot turn up to vote.

"We're going to get through this. I know we're going to get through this, just as we did 100 years ago with the Spanish Flu pandemic."

On the latest count there are now 2368 cases of Covid-19 in Australia, of which almost half are in NSW.

Updated at 2:23pm AEDT on 25 March 2020.

All stores to close at Rockmans, Noni B, Millers, Rivers, Katies, Autograph, W.Lane, Crossroads

Update: While these closures were temporary as a response to COVID-19 restrictions, Mosaic Brands has since flagged plans to close down 300-500 stores for good. Click here to learn more. 

The company that owns iconic brands including Rockmans, Noni B, Millers and Rivers has decided to suspend all store operations starting tomorrow.

Mosaic Brands (ASX: MOZ) will shut almost 1,400 stores across its network because its personal service mandate conflicts with the government's social distancing recommendations.

"All team members affected by the store closures will be stood down with access to leave entitlements while the Group reviews government support schemes that may be available to them," the company said.

"The Group will continue to communicate regularly with the team and will offer other forms of support through this difficult time and period of uncertainty, including access to its Employee Assistance Program."

Mosaic, also known for such brands as Katies, Autograph, W.Lane, Crossroads and Beme, has seen a significant drop in store traffic and revenue.

"The Group is working with its business partners and is reviewing its cost of doing business, with a view to reducing costs to match expected revenue.

"These steps are being taken to ensure the Group is best placed for the coming months and to provide longer-term job security to its 6,800 predominantly female team.

"Mosaic's online operations will continue through this period and customers will be able to purchase from all the Group's nine brand websites."

MOZ shares were down 5 per cent at $0.285 at 1:45pm AEDT.

Updated at 1:48pm AEDT on 25 March 2020.