Beloved Aussie fashion retailer announces 90 stores will close and more than 600 jobs will be axed
Aussie fashion giant Jeanswest has announced up to 90 stores will close and up to 600 jobs will be axed after its parent company collapsed.
Jeanswest was previously placed in administration in 2020, but administrators said economic conditions had only got tougher since then.
It remains unknown if the brand’s online store will remain open.
‘The owners have done everything they can to keep Jeanswest going, but market conditions mean sustaining bricks-and-mortar stores is not viable and unlikely to improve,’ administrator Lindsay Bainbridge said.
‘They deeply regret the impact of store closures on their team members and their customers, and we will be working now with teams across the country.
‘This is a hard day for hundreds of Jeanswest team members and we will be working directly with the team members to provide clarity and information about the next steps,’ he said.
Harbour Guidance has appointed administrators at Pitcher Partners Melbourne to restructure the business.
The shops will now cut prices on all stock in a bid to partially repay its creditors.
Aussie fashion giant Jeanswest (model pictured) has announced up to 90 stores will close and up to 600 jobs will be axed after its parent company collapsed
Jeanswest had been operating across Australia for more than 50 years, after opening its first store in Perth in 1972
Jeanswest was previously placed in administration in 2020 , but administrators said economic conditions had only got tougher since then
‘We will be opening the doors of all stores and selling online to clear all stock to secure a return to creditors,’ Mr Bainbridge said.
Jeanswest had been operating across Australia for more than 50 years, after opening its first store in Perth in 1972.
In 2017, the owner of Jeanswest claimed Australians were forking out their money for ‘lifestyle spending’ on travel and televisions, rather than buying new clothes.
He said this lead to ‘lethargic’ and ‘slothful’ retail habits.
Jeanswest’s collapse follows just five months after major Australian fashion retailer Mosaic Brands entered voluntary administration.
The company behind well-known brands such as Katies, Millers, Noni B, Rivers and Autograph broke the news to the Australian Securities Exchange on October 28.
Mosaic employed around 250 people in its head office and 2,500 workers across 651 stores in Australia and New Zealand. It owed creditors almost $250million.
The staff alone are owed $21million in entitlements such as pay and annual leave, and are also owed $870,000 in superannuation.
The shops will now cut prices on all stock in a bid to partially repay its creditors
Mosaic Brands was Australia’s largest women’s fashion retailer group and had employed more than 4000 staff in more than 700 stores around the country
Mosaic had been Australia’s largest women’s fashion retailer group.
‘Following recent attempts by the company to informally restructure its operations, the board of Mosaic has determined that voluntary administration is now the most appropriate way to restructure the group,’ the company told the ASX at the time.
Earlier this month, Aussie fashion company Designerex collapsed owing thousands of dollars to customers.
Dubbed the ‘Airbnb’ of designer dresses, Designerex, run by Sydney couple Kirsten Kore and Costa Koulis, connects renters of high-end clothes with lenders.
It had been touted as a global success story after expanding into the US market – but in February Daily Mail Australia revealed that many lenders on the site were owed money.
The company announced on March 14 that it had collapsed and bookings through the website were ‘paused’.
‘Unfortunately due to a legal dispute with a technology provider, we have made the difficult but necessary decision to appoint an administrator,’ it said in a statement posted to Instagram.
‘This step allows us to reassess our position, minimise further disruption caused by this provider issue, and explore the best way forward for you – our customers, as well as our investors and stakeholders.
‘The company is working towards any remaining dress supplier payouts and customer refunds to be paid in full, and updates will be provided as they become available.’
Designerex, run by Sydney couple Kirsten Kore and Costa Koulis (pictured), connected renters of high-end clothes with lenders
Natasha Furner said she was owed $3,000 for dress rentals dating back to August
Ally Fashion has had to sack 250 of its staff after the forced closure of 51 of its stores
Also in March, Ally Fashion was also forced to axe 250 staff members after the company collapsed.
The fashion retailer, which was founded in 2001, had 160 stores across Australia and an online shop before its downfall.
The brand was forced into liquidation due to outstanding rent and liquidators assessed the business before it stopped operating 51 stores to improve the financial viability of the company, liquidators BDO Australia said in a statement.
The state with the most Ally Fashion stores to close was Queensland with 19, followed by New South Wales (11), Victoria (8), South Australia (7) and Western Australia (6).
The remaining 109 stores continue to operate after BDO entered into a licence agreement with a related entity of director David Dai.
Bricks and mortar shops have been under pressure from online retailers for years, which has heightened in recent times with the rise of outlets such as Shein and Temu.
