Australian Fashion Labels administrators are getting ready for Friday

The first creditors meeting in the administration of Adelaide-based Australian Fashion Labels (AFL) will take place on January 15. 

The business entered voluntary administration on January 06, appointing Duff & Phelps administrators Brett Lord and Marcus Ayres to handle the process. 

According to reports from Smart Company, the ongoing effects of COVID-19 as well as legacy costs from restructuring to an online-only business put the company under intense pressure. 

"The legacy of those restructuring costs, plus the impact of COVID-19 on sales have become an increasing hang on the business," administrator Ayres told the publication. 

The administrators are seeking a buyer for the business or the capital to continue its operation into the future, helping to also save 57 jobs at AFL, Smart Company reports. 

AFL operates four in-house labels - Cameo Collective, Finders Keepers, Keepsake The Label and The Fifth Label - as well as an online store, BNKR. 

In July 2020, BNKR underwent a replatform, giving it a mobile-first focus while also allowing it to better handle its large volume range, multiple brands and multi-region eCommerce operations.

AFL has over 1,700 stockists and employs over 100 people worldwide. 

The creditors meeting will take place at 11am on January 15.