Jeanswest gone South………………
We were all informed yesterday that clothing retailer Jeanswest has entered voluntary administration, due to the difficult trading conditions facing the clothing retail market in Australia.
LeaseWise have been voicing that the market cannot sustain the amount of retail we have with all of the disruption coming from online competition, occupancy costs, retail saturation, wage pressures, utility pressures etc. for some time.
Although its alarming to see a new headline daily with another retailer going down. LeaseWise expect several more headlines to come throughout the year, more fashion retailers, some general merchandise retailers and then some foodies will also hit the wall.
LeaseWise advise all retailers to get pro-active and face all matters, relevance to market, occupancy costs, supply costs, wage efficiencies etc. and drive their own outcomes instead of waiting for the inevitable.
KPMG’s Peter Gothard and James Stewart have been appointed voluntary administrators for the 48-year-old business, which employs 988 people across 146 stores across Australia.
“Like many other retailers, the business has been challenged by current tough market conditions and pressure from online competition,” Stewart said.
“The administration provides an opportunity for Jeanswest to restructure so as to better respond to the challenging Australian retail market.”
Gothard said the business will continue to operate while the administrators conduct an “urgent” analysis of the business, and that this process only affects Jeanswest’s Australian operations.
“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,” Gothard said.
The first meeting of creditors is scheduled to take place in Melbourne on January 28.