Australian-founded, foreign-owned denim label Jeanswest is closing all of its stores, with up to 600 jobs on the line.
Harbour Guidance, which rescued Jeanswest in 2020, has appointed Pitcher Partners as administrators, citing challenging trading conditions amid a cost-of-living crisis as the reason for shutting 90 stores.
The retailer is aiming to continue operating as an online store, with Pitcher Partners’ Lindsay Bainbridge saying all store stock will be cleared through online sales.
“We will be opening the doors of all stores and selling online to clear all stock to secure a return to creditors,” he said.
All 90 Jeanswest stores across Australia will be shuttered.Credit: AAPIMAGE
Jeanswest is the latest clothing retailer to run into trouble as shoppers tighten their belts, joining Mosaic – owner of Millers, Rivers and Noni B brands – in calling in administrators.
Mosaic’s collapse led to the closure of almost 700 stores and the loss of 2800 jobs. The company owed its creditors more than $318 million.
Jeanswest’s closest competitors in the market are Just Jeans and Jay Jays, which are owned by Myer.
Mid-tier clothing brands have been particularly vulnerable to changing consumer habits, with shoppers holding off on non-essential purchases and increasingly opting to buy items online from retailers like Shein.
According to Australia Post’s latest e-commerce report, Australians spent a record $69 billion in online shopping last year, an increase of 12 per cent on the year before, largely driven by online platforms like Amazon, Shein and Temu.
