Latest news with #Jeanswest
Yahoo
08-05-2025
- Business
- Yahoo
Photos in shuttered Ally store reveals grim voluntary administration reality as Australia faces 'aggressive' China threat
Retailer Ally was forced into a $10 sale marathon after the business was closed forever. (Source: Yahoo Finance Australia) The retail industry is facing a rocky future as consumer spending remains muted amid global uncertainty, interest rate decisions and the cost-of-living crisis. Several big-name retailers have recently gone bust or been plunged into administration after dominating the sector for years or even decades. Sanity, Godfreys, Rivers, Noni B, Alice McCall, Ally, and Jeanswest are some of those brands that have been forced to close, drastically shrink, or change how they operate. Yahoo Finance found a grim scene inside an Ally store in Sydney that shut when the retailer was ordered into liquidation and hundreds lost their jobs in March. The racks were full but the lights were off and doors of the store, inside Sydney's Central Park, were closed. So what happens to all of those clothes? Before they shut for good, they usually try to sell all of their items to recoup some costs and clear out their inventory. Jeanswest sold more than 53,000 pairs of jeans in the first week of a nationwide discounting campaign but Ally - which was launched in 2001 - had no such luck, despite sales as low as $10. "Eventually, all stores close and any remaining products are either donated to charity stores, or if sufficient volumes remain the voluntary administrator may attempt to sell those inventories to a retailer like TK Maxx," QUT consumer expert Professor Gary Mortimer told Yahoo Finance. An Ally store in Sydney's Central Park building had a flash sale before the doors were closed on the retailer forever. (Source: Yahoo Finance Australia) The consumer expert described TK Maxx's business model as "opportunistic" because the retailer usually pounces on buying and selling off-price merchandise. They receive their stock from a wide variety of places, whether they're from cancelled orders, inventory from closed businesses, or end-of-season products. Mortimer said in some cases, remnants can be packed up and sent to a central store for a flash sale but that was costly. "Retailers normally try to avoid this practice as transporting heavily discounted products only increases costs, thus losses," he said. Do you have a story? Email Why are so many retail stores collapsing in Australia? It's no secret that certain industries have been affected by the cost-of-living crisis and its effect on consumer spending. Food and beverage services is without a doubt the worst hit, with 9.3 per cent of businesses in this sector shutting down in the 12 months to February this year. Retail isn't far behind, with a 5.7 per cent closure rate. CreditorWatch chief economist Ivan Colhoun said many businesses were propped up during the pandemic thanks to government support and the Australian Taxation Office (ATO) stopping its pursuit of tax debts.
West Australian
30-04-2025
- Business
- West Australian
Debt pile revealed in new filing for collapsed Jeanswest
Jeanswest had just $13 million in assets to cover about $53m of debts when it collapsed a second time last month. New filings also reveal that the 90-store national retailer owes $4.1m to its 600 staff and is sitting on nearly $776,000 in unclaimed gift vouchers. Jeanswest's Hong Kong backers appointed insolvency experts from Pitcher Partners as administrators of the chain four weeks ago, the 53-year-old brand becoming another victim of cost-of-living pressures and changing retail trends that are making it difficult for bricks-and-mortar retailers to turn a profit. The administrators are exploring a rescue that would see Jeanswest continue on as an online-only business. According to creditor claims included in an update filed with the Australian Securities and Investments Commission, Harbour Guidance Pty Ltd — the Australian holding company that was put under — owed about $53m when Pitcher Partners was called in, including $4.1m in redundancy entitlements and unpaid leave. Harbour Guidance, linked to clothing and textiles mogul Chun Fan Yeung, has owned Jeanswest since it first fell into administration at the start of the pandemic in 2020. Mr Yeung was previously involved with the retailer through a company that bought Jeanswest in 2017 in a related party deal from the Hong Kong-listed Glorious Sun Enterprise. According to the filings, most of the $53m Jeanswest debt — about $45m — is claimed by two Australian and Hong Kong companies associated with Mr Yeung. The Australian Tax Office is owed $122,000. Almost all of the estimated $13m in assets listed in the update was made up of inventory and store fixtures and fittings. Pitcher Partners has been quick to offload Jeanswest's stock, almost immediately launching a successful clearance sale that offloaded 160,000 items, including 53,000 pairs of jeans, in just two weeks. Mr Yeung helped pull Jeanswest — founded in Perth in 1972 — back from the brink after the 2020 collapse but he has struggled to revive the brand's sales amid increasingly tough competition from online retailers. Pitcher Partners' lead administrator, Lindsay Bainbridge, said at the time of his firm's appointment that the owners had 'fought for five years to revive (Jeanswest) but had concluded it was time to step back from physical stores to focus on online retail'. Jeanswest was founded by high-flying WA entrepreneur Alister Norwood, who opened the first Jeanswest store in Perth in 1972. The business expanded to the east coast before Mr Norwood sold up in the 1990s after key suppliers, including Levi Strauss and Faberge, stopped delivering stock because of mounting debts. It was bought in 1994 by Glorious Sun, which expanded the brand overseas with stores in Russia, Fiji, Venezuela, Vietnam and China.
Miami Herald
27-03-2025
- Business
- Miami Herald
Global retail chain closing most stores, no bankruptcy yet
In today's retail landscape, countless pressures seem to be weighing down both consumers and retailers. Once seemingly robust businesses have been hurt by a change in the market. Related: Global supermarket leader closing 17 stores, dozens of cafes Take, for example, Joann or Forever 21. In their heydays, both retailers earned prominence and success for what they offered. In Joann's case, it was a seemingly unmatched selection for crafters. Nowhere else could you find a chain store with its quality, inventory and pricing. As for Forever 21, the mall retailer offered rock-bottom prices for fast fashion. Finding the trendy selection of apparel at any other retailer at the discounts Forever 21 was offering was difficult. Both those retailers, however, have now filed for Chapter 11 bankruptcy and both are closing all their stores. The question isn't necessarily where they went wrong but instead which external pressures were so strong that two former kings of retail couldn't withstand the test of time. The situation isn't unique to Joann and Forever 21. Plenty of brick-and-mortar retailers have struggled in recent years as the way consumers shop has shifted. Many mall retailers find themselves especially troubled, as the indoor shopping mall falls to the wayside and consumers choose instead to shop other ways. More closures: Another struggling mall retail chain closing more storesStruggling supermarket chain closes more locationsPopular bank closing dozens of branches (locations revealed) Some opt to shop at outlet malls, which typically offer lower prices for brand names than stores at traditional malls do. Others shop at discounters in suburban plazas, like Ross, Marshalls and TJ Maxx. And plenty choose to do their shopping from the comfort of their homes. Large online retailers like Amazon and Shein have eaten into the market shares of mall retailers like Forever 21 and Express. The problem isn't just in North America, either. Top Australian denim and clothing retailer Jeanswest will be closing 90 of its stores and cutting about 600 jobs as a result. Jeanswest will enter administration for the second time since 2020. When it first entered administration in 2020, it was bailed out by Hong Kong-based Harbour Guidance. Administrators say Jeanswest is struggling as customers try to save more to afford basic necessities. "The owners have done everything they can to keep Jeanswest going," administrator Lindsay Bainbridge said in a statement quoted by Australia, adding, "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." Jeanswest will put its merchandise in stores on sale as it prepares to close those outlets. Its online future is less certain, with some administrators indicating they intend to keep Jeanswest going. Several stores in New Zealand are expected to remain open. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
26-03-2025
- Business
- Yahoo
Australia's Jeanswest enters administration as physical stores close
Australian fashion brand Jeanswest's parent Harbour Guidance has decided to put the retailer into voluntary administration amid tough trading conditions, reduced discretionary spending and the increased cost of living. Jeanswest maintains a network of 90 stores across Australia and has a workforce exceeding 600 individuals. The closure of physical outlets is being planned while the brand's online presence and potential restructuring avenues remain under consideration. Harbour, which rescued Jeanswest after it entered administration in 2020, has appointed Lindsay Bainbridge, Andrew Yeo and David Vasudevan of Pitcher Partners Melbourne as administrators. Bainbridge remarked that despite a five-year effort to rejuvenate the 53-year-old fashion brand, it was necessary to withdraw from the physical retail market to pivot towards e-commerce strategies. He stated: '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. '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.' Bainbridge indicated that a sale of all in-store inventory would commence at once as the appointed administrators initiated the business restructuring process. He added: 'We will be opening the doors of all stores and selling online to clear all stock to secure a return to creditors.' Jeanswest's downfall comes after KPMG, the receivers of Mosaic, another retail conglomerate that operated Australian brands Rivers, Noni B and Katies, said that it would shutter all remaining Millers and Noni B stores as it failed to secure a buyer. Mosaic, which has 2,500 workers across 651 stores in Australia and New Zealand, entered administration in 2024, as reported by ABC News. "Australia's Jeanswest enters administration as physical stores close" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
26-03-2025
- Business
- Yahoo
Iconic Aussie clothes brand collapses
The parent company of Australian born fashion icon Jeanswest has called in the administrators as they come up with a plan to shut down the brand's retail stores, just a few years after buying the brand. Jeanswest has now entered voluntary administration for the second time since 2020, with the business unable to keep its physical stores open. The shutting down of the physical retail chain will impact 600 employees across 90 stores. The business will still operate online. Harbour Guidance Pty Ltd, the corporate entity behind the Jeanswest brand, on Wednesday appointed Pitcher Partners Lindsay Bainbridge, Andrew Yeo, and David Vasudevan as joint administrators. Mr Bainbridge said the company fought for five years to revive the 53-year-old brand but concluded it had to shut down its physical stores. '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,' he 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 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. Mr Bainbridge 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. Sign in to access your portfolio
