Jeanswest Retailer Collapses, Leading to Store Closures and Job Losses
The Australian clothing retailer Jeanwest enters administration amid challenging retail conditions, impacting hundreds of employees.
Jeanswest, the Australian clothing retailer, has announced its collapse, resulting in the impending closure of over 90 stores and significant job losses affecting hundreds of workers.
The announcement was made on Wednesday, with administrators attributing the decision to increasingly adverse trading conditions within the Australian retail sector.
Administrators from Pitcher Partners reported that Jeanswest has been struggling to maintain operations since it entered administration back in January 2020. The brand had been acquired by the Hong Kong company Harbour Guidance following its initial administration.
In a statement, administrator Lindsay Bainbridge indicated that the decision to close Jeanswest followed five years of attempts to revive the business, which faced declining consumer spending amid rising living costs.
Bainbridge noted, "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."
The upcoming closures will affect over 600 employees who are currently working across its stores.
Administrators have suggested a possibility of maintaining the brand online, which could potentially preserve some jobs; however, the majority of the workforce is tied to the physical store locations scheduled for closure.
Jeanswest is known for its presence in Australia and New Zealand, although administrators confirmed that the New Zealand locations will not be closing at this time.
The retailer is expected to initiate a sale of its remaining stock shortly, coinciding with a mid-season promotional event.
Founded in 1972 with its first store in Perth, Jeanswest expanded to other Australian cities throughout the 1980s.
It was purchased by Glorious Sun, a Hong Kong firm, in 1994, before being sold to Howsea Limited in 2017.
Jeanswest's closure comes on the heels of another major retail insolvency, that of retail group Mosaic, which declared bankruptcy last year, resulting in the closure of multiple Australian chains such as Rivers and Noni B, and affecting thousands of jobs across Australia and New Zealand.
Mosaic owed creditors nearly $250 million and its employees were informed of their entitlement dues, which are reportedly significant.
As the retail sector in Australia grapples with ongoing financial challenges, the federal government has been approached regarding potential assistance for workers impacted by both the Jeanswest and Mosaic collapses.
The announcement was made on Wednesday, with administrators attributing the decision to increasingly adverse trading conditions within the Australian retail sector.
Administrators from Pitcher Partners reported that Jeanswest has been struggling to maintain operations since it entered administration back in January 2020. The brand had been acquired by the Hong Kong company Harbour Guidance following its initial administration.
In a statement, administrator Lindsay Bainbridge indicated that the decision to close Jeanswest followed five years of attempts to revive the business, which faced declining consumer spending amid rising living costs.
Bainbridge noted, "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."
The upcoming closures will affect over 600 employees who are currently working across its stores.
Administrators have suggested a possibility of maintaining the brand online, which could potentially preserve some jobs; however, the majority of the workforce is tied to the physical store locations scheduled for closure.
Jeanswest is known for its presence in Australia and New Zealand, although administrators confirmed that the New Zealand locations will not be closing at this time.
The retailer is expected to initiate a sale of its remaining stock shortly, coinciding with a mid-season promotional event.
Founded in 1972 with its first store in Perth, Jeanswest expanded to other Australian cities throughout the 1980s.
It was purchased by Glorious Sun, a Hong Kong firm, in 1994, before being sold to Howsea Limited in 2017.
Jeanswest's closure comes on the heels of another major retail insolvency, that of retail group Mosaic, which declared bankruptcy last year, resulting in the closure of multiple Australian chains such as Rivers and Noni B, and affecting thousands of jobs across Australia and New Zealand.
Mosaic owed creditors nearly $250 million and its employees were informed of their entitlement dues, which are reportedly significant.
As the retail sector in Australia grapples with ongoing financial challenges, the federal government has been approached regarding potential assistance for workers impacted by both the Jeanswest and Mosaic collapses.
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