Historic retail chain Harris Scarfe has been placed in voluntary administration and is expected to be sold.
The company has 66 stores across the nation after starting as a hardware business in Adelaide in 1849.
The Stockland Shellharbour store is the company's only outlet in the Illawarra.
Trading will continue over the Christmas period with the chain's 1800 staff to be paid by receivers Deloitte Restructuring Services.
We will be making every effort to secure a future for the business and intend to commence an immediate sale of business process.
Deloitte partner Vaughan Strawbridge said he was confident there was more than sufficient assets to meet all employees' entitlements.
The receivers intend to sell the business as a going concern and save as many jobs as possible.
"Harris Scarfe is a longstanding retail institution," Mr Strawbridge said.
"We will be making every effort to secure a future for the business and intend to commence an immediate sale of business process."
Harris Scarfe retails bed linen, kitchenware, homewares, electrical appliances and men's and women's clothing and has annual sales of about $380 million.
As the administration process continues, the group will honour all gift cards and lay-bys in full.