The Reject Shop is set to close the doors of seven of its Australian retail outlets in the next month following the shock announcement its chief executive has quit.

It has been revealed the company has forecast a predicted loss of $2million.

Falling profits, along with increases to operational costs, have been cited as reasons why the chain is currently undergoing a restructure, shares Daily Mail.

The iconic retailer which started out as a single shop in Melbourne in 1980 expanded to 350 franchises across the country in 2017.

‘The reduced earnings guidance reflects a tough trading environment in the retail sector which has continued to be impacted by low consumer confidence, flat wages, increases in the cost of living and a rapidly falling housing sector,’ the company said in a statement.

The company said Ross Sudano would leave ‘in the near term’ and general manager of supply chain, strategy and innovation Dani Aquilina had been appointed acting CEO while it searched for a replacement.

Seven stores will close by the end of June after the company was unable to negotiate ‘acceptable’ rents.

It is not yet known which stores would be closing their doors.

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