In yet another blow to the Australian retail landscape, popular denim retailer, Jeanswest has gone into voluntary administration.
The clothing chain has cited online competition and reduced consumer spending as the primary reasons for their collapse.
Jeanswest currently has 146 shops nationwide with a team of 988 staff members. The retailer opened its first store in Perth in 1972 and is owned and operated by Hong Kong company Glorious Sun Enterprises Ltd.
KPMG were appointed as voluntary administrators for the brand and is expected to conduct an “urgent analysis” of the business to determine key cost-saving initiatives.
KPMG partner Peter Gothard said they will investigate all options to prevent stores from closing en-masse.
“Jeanswest will continue to operate while the Administrators conduct an urgent analysis of the business,” said Mr Gothard.
All Options Are On The Table
“The Administrators will be looking at all options for the restructure or sale of this established Australian retail business and are seeking urgent expressions of interest from parties interested in acquiring or investing in the business.”
Why Did The Business Collapse?
There are a number of factors that have led to the weakened position of Jeanswest.
“Like many other retailers, the business has been challenged by current tough market conditions and pressure from online competition,” said James Stewart, head of retail restructuring at KPMG.
“The Administration provides an opportunity for Jeanswest to restructure so as to better respond to the challenging Australian retail market.”
The retailer will continue to operate as normal while a potential buyer for the business is found.
The initial meeting to discuss the future of the company will be held on 28 February.
More Retailers In Trouble
As reported in 9News, there have been a number of Australian retailers that have been in strife over the last year. These include:
Curious Planet ; Napoleon Perdis ; Criniti’s Restaurant ; Bardot ; McWilliams Wines ; EB Games ; Red Rooster ; Ed Harry ; Harris Scarfe ; Karen Millen ; Zanui ; Muscle Coach ; Dimmeys
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