Jeanswest Closing Down Stores in Australia
Synopsis
In the next six weeks, Jeanswest will close all 87 of its stores in Australia. Harbour Guidance, the company behind the fashion retailer, bought Jeanswest in 2020. However, moving forward, it will operate exclusively…
In the next six weeks, Jeanswest will close all 87 of its stores in Australia. Harbour Guidance, the company behind the fashion retailer, bought Jeanswest in 2020. However, moving forward, it will operate exclusively as an online retailer.
As a result, the closure of stores could affect up to 600 jobs. In the weeks ahead, the Aussie fashion store will sell its remaining stock.
A report from last week revealed the company made more than $20 million in jeans sales in their nationwide discounting campaign.
What a Second Creditor’s Meeting Means for Jeanswest
Administrators of the company have applied for an extension regarding the deadline of the second creditor’s meeting
However, a second creditor’s meeting may change the trajectory of the company. At the meeting, creditors will vote on a payment plan that could hand over control to the fashion giant’s directors again or appoint liquidators.
Although the physical store locations are set to close, the company may continue as an online retailer.
Preparations for Closure
An administrator of the company, Lindsay Bainbridge, said Jeanswest has made an effort to revive the brand, but ultimately concluded it was time to shift business to online retail.
“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.
In regards to the potential jobs that will be affected, 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.”
Bainbridge said administrators will be working with Jeanswest team members to provide clarity about next steps.
Sources:
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