More than 90 Jeanswest stores should close after the company behind the fashion brand collapsed, endangering hundreds of retail workers jobs.
The administrators were summoned to Harbor Guidance Pty Ltd on Wednesday, about five years after rescuing the 53-year-old mark in 2020.
“Owners have done everything they can to keep Jeanswest ongoing, but market conditions mean that the maintenance of brick and mortar stores is not feasible and it is unlikely to improve,” said Lindsay Bainbridge, partner at the Pitcher Partners receiver.
“They deeply regret the impact of stores closure on team members and their customers and now we will be working with teams across the country.”
Jeanswest operates from over 90 locations in Australia and employs over 600 employees.
All of your points of sale should close, but the brand and on -line store can continue to operate if the company can be restructured.
Difficult commercial conditions, fueled by the cost of living crisis and a drop in consumer spending, were held responsible for the collapse.
It follows similar battles for other large retail chains that cost thousands of jobs in the besieged industry.
Bainbridge said he expects all store actions to continue for immediate sale as administrators restructured the business.
“Let’s open the doors of all stores and sell on -line to clean all actions to ensure a return to creditors,” he said.
Australian Retailers Association said a slowdown in consumer spending costs and business increase has left many retailers extremely vulnerable.
“We are deeply sad to learn that Jeanswest will close its brick and mortar stores,” said Fleur Brown industry director.
“This decision affects hundreds of retail workers and our thoughts are with all team members at this difficult time.”
The association requested support from the federal and state government to strengthen the retail sector, which said it employed 1.4 million people and contributed almost 20 % of the national gross domestic product.
More than 3000 workers should lose their jobs when Mosaic Brands Group, the company behind Millers, Noni B, Katies, Rivers and others, went into voluntary administration in October, announcing all its brands and stores in mid -April.
The group had 763 stores and employed about 3000 people in Australia and New Zealand.
He collapsed due to $ 249 million creditors.
