The Federal Court of Australia has forced Australian retailer Ally Fashion into liquidation following an application by a landlord for rent arrears.
The court appointed Jeff Marsden and Duncan Clubb of BDO Australia on February 28, 2025.
Ally Fashion is an Australian-owned female fast fashion retailer that was founded in 2001, with 160 stores across Australia and an online store.
Following an urgent assessment of the business by the liquidators, they have ceased operating 51 retail stores to improve the financial viability of the company.
This includes 19 stores in Queensland, 11 stores in New South Wales, eight in Victoria, seven in South Australia and six in Western Australia.
A majority of the retailer's stores are located on the east coast of Australia. Ally Fashion also manages two stores in Darwin
Following BDO’s appointment, the liquidators confirmed they have entered into a license agreement with a related entity of Ally Fashion director David Dai to continue to operate the remaining stores.
“Ally Fashion is a well-known Australian brand, with a dedicated team,” Marsden said. “The closure of underperforming stores and entering into a licence agreement will allow the business to continue operating in the short term whilst we urgently explore options to restructure, recapitalise or sell the business.”
BDO did not provide any further comment.