The parent company of Australian-born fashion brand Jeanswest has called in the administrators, with plans already underway to shut down the brand's retail stores.
Jeanswest currently operates from over 90 locations in Australia and employs over 600 team members.
Harbour Guidance Pty Ltd, which rescued Jeanswest after it entered administration in 2020, has made the decision to put the company into voluntary administration, appointing Lindsay Bainbridge, Andrew Yeo and David Vasudevan of Pitcher Partners Melbourne.
The company cited tough trading conditions amid reduced consumer spending and increased cost of living.
While the bricks and mortar business operations are set to close in due course, Jeanswest and online store may be continuing and all restructuring options remain open.
Bainbridge, from Pitcher Partners, said the company had fought for five years to revive the 53-year-old brand but had concluded it was time to step back from physical stores to focus on online retail.
“The owners have done everything they can to keep Jeanswest going, but market conditions mean sustaining bricks-and-mortar stores is not viable and unlikely to improve,” he said.
“They deeply regret the impact of store closures on their team members and their customers, and we will be working now with teams across the country.”
Bainbridge acknowledged the impact of the decision on staff.
“This is a hard day for hundreds of Jeanswest team members and we will be working directly with the team members to provide clarity and information about the next steps,” he said.
Bainbridge said he expected all store stock to go on immediate sale as the administrators began the process of restructuring the business.
“We will be opening the doors of all stores and selling online to clear all stock to secure a return to creditors,” he said.