Hundreds of workers are likely to lose their jobs as the company behind fashion retailer Jeanswest collapses, with more than 90 stores to close.
Administrators were called into Harbour Guidance Pty Ltd on Wednesday, about five years after it rescued the ailing 53-year-old brand in 2020.
“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,” said Lindsay Bainbridge, a partner at receiver Pitcher Partners.
“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.”
Jeanswest currently operates from more than 90 locations in Australia and employs over 600 staff.
All its stores are expected to close, but the brand and online store may continue to operate if the business can be restructured.
Tough trading conditions, fuelled by the cost-of-living crisis and a fall in consumer spending, have been blamed for the collapse.
Mr Bainbridge said he expected all store stock to go on immediate sale as the administrators began the process of restructuring the business.
“We will be opening the doors of all stores and selling online to clear all stock to secure a return to creditors,” he said.
Mosaic Brands Group, the company behind Millers, Noni B, Katies, Rivers and others, went into voluntary administration in October, with all its brands and stores to close.
The group had 763 stores and employed about 3000 people in Australia and New Zealand.