Bettina Liano has broken her silence following the collapse of her brand into administration last year, and spoken exclusively to Ragtrader about plans ahead after recouping the business.
The brand, which was placed into voluntary administration due to financial strain in July last year, has been back in the hands of its original founder since August 2011. However, Liano has now revealed a string of changes to come as she gears for growth.
“I tried really hard for two years to avoid going into administration and then the pressure from the creditors just became too much. It wasn't my finest hour. I couldn't control it and it got too big for me. I also didn't have the proper structure in there and I figured that out a little too late,” she said.
“The bank put a lot of pressure on me as well so they've got a lot of blood on their hands. But I've deconstructed the business and I'm now running a lean, mean machine... I've got a much tighter grip on the business now. ”
Liano, who has previously operated a retail chain of up to 10 stores nationally and employed 90 people across the country, also said that while the administration process downsized the business significantly, she has plans to rebuild.
However, she said she has no intention to return to her previous management structure or larger staff numbers.
“I went from 10 stores at one time to the five retail stores now, plus my online store. In terms of staff, I have one third of the staff I had, probably one quarter. I had 28 people in head office two and a half years ago and I have barely any staff now, I'm pretty much doing everything myself – but I can't believe how much easier it is.”
Due to rising costs, Liano has also confirmed that the brand's production and manufacturing processes are set to move offshore to China, with the smoother supply chain creating export opportunities.
“There's a reason why I've never really expanded worldwide before and essentially, in a grand manner, that reason is supply. Previously,
I was producing everything in Australia, but it was costing me a fortune and I was producing nothing. So now I have to go offshore to China and hand that part of the business over to the people who know how to do that.”
Liano said the US, Europe, and Asia are her initial target markets for wholesale, with plans to also expand into other product categories such as accessories in the near future.
“I've had offers, mostly from manufacturers, so I'd like to do that, definitely by next year,” she said. “In terms of retail expansion, I would consider opening more stores, I'm not afraid of that, but I'm looking for some good deals.
“Everything just comes down to costs and you have to be realistic. [But] I'm a fighter and a survivor and I always have been. I started with absolutely nothing and I'm pretty far from that at this point – so if I can do it with nothing, I can do it with what I've got. I don't know how long it will take but I'm confident.”
Daniela Aroche