A buyer has been found for the Australian fashion chain Brown Sugar.
The womenswear company went into administration in August and notes from the first creditors meeting revealed that poor stock ordering, successive management changes and decreasing net profit were some of the reasons for its demise.
However, one of Brown Sugar's administrators, Deloitte partner Sal Algeri, said it has now secured the company Brand Directions as a buyer.
The retail chain will continue to operate under the Brown Sugar name and a number of Brown Sugar landlords will have the opportunity to retain a tenant.
“Given the current retail environment, the administrators are extremely pleased to have been able to secure a purchaser who is keen to continue operating the business,” Algeri said.
“Brand Directions has indicated it will seek to keep the remaining 16 Brown Sugar stores open and offers of employment will be made to approximately 100 staff members.”
Algeri said it will come as welcome news for many of the existing staff who had faced the possibility of losing their jobs after the chain was placed under voluntary administration.
“Any outstanding entitlements of those staff members who elect to accept these offers will be transferred to the new owners,” Algeri said.
Brand Directions has also indicated that it is considering re-opening some stores that have already closed and re-hiring a number of staff who lost their jobs as a result.
Established in 1975, Brown Sugar operated 40 stores across Victoria, New South Wales, South Australia, Tasmania and Western Australia.