Iconic Australian designer Kirrily Johnston has collapsed into administration after 12 years of business, following the fate of fellow designer Lisa Ho just weeks ago.
Johnston, who launched her eponymous label for Australian Fashion Week in 2004, confirmed the brand has been placed into voluntary administration following a series of GFC issues and “manufacturing bad luck”.
The designer currently operates two stand-alone own stores – one each in Sydney and Melbourne – in addition to one e-boutique. Her namesake label is also stocked in David Jones and more than 70 boutiques nationally.
As reported, two manufacturing disasters in particular culminated in a loss of hundreds of thousands of dollars when Johnston's shoe manufacturer and fabric supplier allegedly refused to accept responsibility for producing faulty goods or return the payment for the goods which were paid for upfront.
In addition, Johnston cited high rents and the cost of manufacturing some of her products in Australia as another obstacle in an “ever increasing expensive uphill battle”.
The high Australian dollar dealt the final blow, chipping away at Johnston’s international sales which had been growing steadily since she started her business in 1999, according to reports.
Commenting on the situation, Johnston has told media that despite her love for the brand, the risk to continue on was to great and she wanted to do the “honourable thing” by her suppliers and other stakeholders.
“Unfortunately for me it was a culmination of GFC issues and manufacturing bad luck which tipped the business over the edge," she said.
"I could have traded on and maybe pulled myself out of this awful situation but I did not want to take the risk and keep raking up debts that I may not be able to repay. I wanted to do the honourable thing, as it's not just my business and life but other people's lives as well that this situation will affect.”
Johnston's fall from grace follows the demise of fellow iconic Australian designer Lisa Ho, whose empire collapsed into administration in May following a string of financial woes, as reported on ragtrader.com.au.
“With retail stores really suffering because of the amount of sales they are losing to online purchases, many boutiques treat local wholesale orders as if they are trading on consignment,” Johnston said.
“This situation makes running a business almost impossible when you have paid for those products up front every step of the way. Also, the boutiques who sell our collection are dropping off like flies on a weekly basis as everyone in retail is struggling.”
With no backer, Johnston added that she is not sure what her immediate future holds but insists she is still completely in love with her brand and will never lose her desire to design.