Harris Scarfe entered receivership last month and Deloitte Restructuring Services was appointed, planning to sell the business as a going concern.
Twenty-one stores will close across Western Australia, Queensland, ACT, NSW, Victoria and South Australia, while 44 will remain open - five more than originally anticipated.
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The remaining stores will be offered for sale.
Deloitte Restructuring Services partner Vaughan Strawbridge said store closures were determined based on past and likely future profitability.
"We have continued to trade the business since our appointment, and this has been well supported by loyal employees and customers, so this has been a difficult decision, but one necessary to position the Harris Scarfe business for a successful sale and continued operation," he said.
"All efforts are being made to redeploy affected staff around the rest of the store network, and all staff that leave the business will receive all wages and entitlements in full on the closure of individual stores.
"Going forward, we certainly remain focused on running the broader store network, and selling the business as the best outcome for remaining employees and suppliers."