Jeanswest’s 53 years of operation in Australia are set to end. Photo: Facebook.
Jeanswest is the latest clothing outlet to end its operations in Australia, after it was announced its parent company, Harbour Guidance Pty Ltd, had entered voluntary administration.
Across the Region network, stores will close in Tuggeranong, Bega, Wollongong, Albury and Griffith. Across the country, 90 outlets will shut, leaving 600 employees out of a job.
Jeanswest, which was founded in Perth in 1972, previously entered administration in 2020, when it was rescued and kept alive by Hong Kong-owned Harbour Guidance Pty Ltd.
But on Wednesday (26 March), the parent company was placed in the hands of Melbourne-based insolvency experts Pitcher Partners Melbourne with no prospect of the physical stores being saved.
“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.”
Mr Bainbridge said the company had fought for five years to revive the 53-year-old brand but had concluded it was time to step back from physical stores to focus on online retail.
He said the brand and online store may be continuing, and all restructuring options remain open.
Mr Bainbridge acknowledged the impact of the decision on staff.
“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.
He said he expected all store stock to go on immediate sale as the administrators began the process of restructuring the business.
“We will be opening the doors of all stores and selling online to clear all stock to secure a return to creditors,” he said.
The news comes just one month after administrators announced troubled fashion empire Mosaic Brands would not be saved. This meant all its clothing stores – Autograph, Katies, Rivers, Rockmans, Crossroads, W.Lane, BeMe, Millers and Noni B – would close by April 2025.
Some 2800 employees have or will be left out of a job. Region has reported that some had still not been paid their entitlements several months after their stores closed. The Albanese Government said it would intervene to fast-track payments for employees, but as of writing, two women who spoke to us were still unsure of when they would be paid.
At the time of the Mosaic Brands collapse, veteran retail analyst Geoff Dart said he expected things to get worse for retail.
“The world is becoming smaller, brands are becoming stronger. The ones that don’t resonate with consumers are going by the wayside,” he said.
“The only shops that are going to survive are those who have a strong marketing presence and offer value for money, like Kmart.”
Original Article published by Oliver Jacques on Riotact.
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