The company is the latest to shift its business model entirely online, following the thread of changing customer behaviours.
Roughly 300 staff will be affected by the move, although Lincraft has guaranteed that all entitlements will be paid.
It comes after a prolonged period of challenging retail conditions, the company said in a statement announcing the move on Tuesday.
Changing consumer behaviour, increased operating costs and growing pressure from low-cost overseas competitors were all listed as factors in the decision.
Lincraft currently has 28 stores still in operation, mostly across Australia's eastern states and territories, with plans to close the outlets over the coming months.
The company began as a market stall in Melbourne in 1938 before being taken over by current owners John Maguire and Brian Swersky as Lincraft Australia in 2005.
Mr Maguire said the decision to close the stores was an extremely difficult one, particularly given the impact on existing staff.
"Lincraft has been part of Australian and New Zealand communities for generations," he said.
"A sad day for our team members and customers alike.
"Our priority is to support our team members through this transition and to communicate with them as clearly and respectfully as possible."
Lincraft is the latest in a long line of established Australian retailers to be affected by changing consumer appetites.
Barbecues Galore recently made the move to shutter more than 60 shops.
The company's stores are due to begin closing up from Tuesday with transitional arrangements under way for a remaining 27 franchise-owned stores.
The closures are expected to leave 500 staff redundant.
In October 2024, Mosaic Brands Group - the company behind Millers, Noni B, Katies, Rivers and others - announced all its stores would close by April 2025.
The group had 763 stores and employed about 3000 people in Australia and New Zealand.
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