Yet another significant Australian retailer, boasting a workforce spread nationwide, has entered administration, resulting in the closure of all its physical outlets.
The parent company of the Australian-born fashion label Jeanswest has engaged administrators as they devise a strategy to close the brand’s retail outlets, mere years after acquiring the label.
Jeanswest has once again entered voluntary administration, marking its second occurrence since 2020, as the business struggles to maintain its physical store operations.
The closure of the physical retail chain will affect 600 employees spanning 90 stores. The enterprise will continue to function in the digital realm.
On Wednesday, Harbour Guidance Pty Ltd, the company responsible for the Jeanswest brand, appointed Pitcher Partners’ Lindsay Bainbridge, Andrew Yeo, and David Vasudevan as joint administrators.
Mr Bainbridge remarked that the company endeavoured for five years to breathe new life into the 53-year-old brand but ultimately determined that it was necessary to close its physical stores.
“The proprietors have exerted every effort to maintain Jeanswest’s operations, yet the prevailing market conditions render the continuation of physical retail outlets unfeasible and improbable to enhance,” he remarked.
“They sincerely regret the repercussions of store closures on both their team members and customers, and we will now be collaborating with teams nationwide.”
Mr Bainbridge recognized the effect of the decision on the employees.
“Today is particularly challenging for numerous members of the Jeanswest team, and we will be engaging directly with them to offer clarity and information regarding the forthcoming steps,” he stated.
Mr Bainbridge indicated that he anticipated all store inventory would be put on immediate sale as the administrators commenced the process of restructuring the business.
“We shall be opening the doors of all our stores and facilitating online sales to clear all stock, thereby ensuring a return to our creditors,” he stated.
Source: news.com.au
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