Jeanswest, an Australian-founded denim brand, has announced the closure of all its stores, placing approximately 600 jobs at risk.

Harbour Guidance, which acquired the company in 2020, has enlisted Pitcher Partners as administrators, citing difficult trading conditions and a prevailing cost-of-living crisis as the driving factors behind the decision to shut its 90 retail outlets across Australia.

In an effort to transition into the digital marketplace, Jeanswest plans to continue operating as an online retailer.

Administrator Lindsay Bainbridge stated that the company will clear all existing store stock through online sales.

All physical locations will open for stock clearance, aiming to secure returns for creditors.

The announcement from Jeanswest follows a broader trend in the retail sector, with several clothing brands facing significant challenges.

Notably, Mosaic, the owner of Millers, Rivers, and Noni B brands, encountered financial difficulties resulting in nearly 700 store closures and approximately 2,800 job losses, with debts exceeding $318 million.

In the competitive landscape, Jeanswest competes closely with other mid-tier brands such as Just Jeans and Jay Jays, which are both owned by Myer.

Recent shifts in consumer behavior have left many mid-tier retailers vulnerable, as customers increasingly forgo non-essential purchases and opt for online shopping platforms.

According to Australia Post's latest e-commerce report, Australians spent a record $69 billion on online shopping in the preceding year, marking a 12% increase compared to the previous year, driven mainly by e-commerce giants like Amazon, Shein, and Temu.

The report highlights that online marketplaces contributed significantly to the growth, accounting for nearly 40% of the total $16 billion increase in online spending in 2024, as consumers sought more affordable options.

Bainbridge emphasized that the current economic climate has rendered it unfeasible for Jeanswest to continue operating physical stores, expressing regret for the impact the closures will have on employees and customers alike.

He stated that they are committed to working with team members to provide information regarding their next steps.

Jeanswest previously faced significant challenges in early 2020 when it went into voluntary administration and subsequently closed 37 stores, leading to the redundancy of 263 employees.

The company was rescued by Harbour Guidance, part of Hong Kong-based Harbour Guide, which is owned by Chun Fan Yeung.

Yeung's family investment vehicle, Howsea, previously acquired Jeanswest from Glorious Sun Enterprises in a $41 million deal in 2017.