Former suppliers of embattled denim brand Bettina Liano have spoken out, following its revival under fashion powerhouse Apparel Group.
The eponymous brand, founded by Bettina Liano in 1983, was placed into voluntary administration in July, leaving a number of suppliers in the lurch.
In a register obtained by Ragtrader from a creditor’s meeting on March 8, 2012, unsecured claims totalled over $3.3 million while secured creditor ANZ claimed $2.3 million.
Among these suppliers is Stockade Leather owner Peter Wallis, who worked with Liano for almost eight years, crafting belts for her creations.
Wallis, who was owed $1800 by the time the business crumbled, claims he was advised of the administration a few days after the fact and has since only received a 10 per cent pay out – $187.16 – of the total amount owed.
“The banks were looked after and as usual everybody else got screwed. We need commercial laws that stop this from happening again and again. It’s always the same guys going broke and then starting up again only to do it all again,” he said.
“Anybody can go broke, especially in this environment. But this was negligence, arrogance and complete business inaptitude. How can you rationalise refurbishing shops that just needed a coat of paint, opening new shops when your client base is shrinking and buying materials that just wind up sitting in a warehouse because you have changed your mind on the season's designs in the last moment?”
Another former supplier to Bettina Liano, who has requested anonymity, said he also only received 10 per cent of the $80,000 owed to him, and the situation has severely affected his business.
“I don’t think it is appropriate that this should occur as it isn’t ethical. I have supported Bettina Liano for over 10 years and the business just cleared its debts like that. The main thing was financial. I had to borrow funds to keep my business afloat. Then I had to source other work. It took a long time to recover as we are just a small business.”
Melbourne-based pattern maker Fashion House Consultancy was also impacted, according to owner Lyn Murphy, but it was able to extract debts by holding work in progress.
“We could see the writing on the wall - the company was extremely badly managed in the last two years. Money wasted and the staff turnover was extreme,” she said.
“It does leave a bad taste when so much money was owed to so many, and we all put ourselves out to try and keep the label going.”
Bettina Liano forged a strategic alliance with Apparel Group last month, which will sell and supply domestic and international wholesale customers.
