Aussie fashion giant Jeanswest has announced up to 90 stores will close and up to 600 jobs will be axed after its parent company collapsed.
Harbour Guidance has appointed administrators at Pitcher Partners Melbourne to restructure the business.
Jeanswest was previously placed in administration in 2020, but administrators said economic conditions had only got tougher since then.
It remains unknown if the brand’s online store will remain open.
‘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,’ administrator Lindsay Bainbridge 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.
‘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.
The shops will now cut prices on all stock in a bid to partially repay its creditors.
Aussie fashion giant Jeanswest (model pictured) has announced up to 90 stores will close and up to 600 jobs will be axed after its parent company collapsed
Jeanswest had been operating across Australia for more than 50 years, after opening its first store in Perth in 1972
Jeanswest was previously placed in administration in 2020 , but administrators said economic conditions had only got tougher since then
‘We will be opening the doors of all stores and selling online to clear all stock to secure a return to creditors,’ Mr Bainbridge said.
Jeanswest had been operating across Australia for more than 50 years, after opening its first store in Perth in 1972.
In 2017, the owner of Jeanswest claimed Australians were forking out their money for ‘lifestyle spending’ on travel and televisions, rather than buying new clothes.
He said this lead to ‘lethargic’ and ‘slothful’ retail habits.
Jeanswest’s collapse follows just five months after major Australian fashion retailer Mosaic Brands entered voluntary administration, putting thousands of jobs at risk.
The company behind well-known brands such as Katies, Millers, Noni B, Rivers and Autograph broke the news to the Australian Securities Exchange on October 28.
The shops will now cut prices on all stock in a bid to partially repay its creditors
Mosaic Brands was Australia’s largest women’s fashion retailer group and had employed more than 4000 staff in more than 700 stores around the country
Mosaic Brands was Australia’s largest women’s fashion retailer group and had employed more than 4,000 staff in more than 700 stores nationally during a cost of living crisis.
‘Following recent attempts by the company to informally restructure its operations, the board of Mosaic has determined that voluntary administration is now the most appropriate way to restructure the group,’ the company told the ASX.
Bricks and mortar shops have been under pressure from online retailers for years, which has heightened in recent times with the rise of outlets such as Shein and Temu.
More to come.
