The iconic Australian fashion brand Jeanswest is closing its doors – literally. The company’s parent entity has called in administrators, marking the beginning of the end for its physical retail stores.
This move comes just a few years after the brand was acquired, and it’s not the first time Jeanswest has faced financial struggles, having entered voluntary administration for the second time since 2020.
What This Means for Employees and Customers
The closure of Jeanswest’ physical stores will affect around 600 employees across 90 stores nationwide.
However, the brand will continue to operate online, offering customers a glimmer of hope.
While this decision is a significant blow to the fashion industry, it’s a harsh reality that many retailers are facing in today’s market.
A Hard Decision: Why Jeanswest Had to Act
According to Lindsay Bainbridge, one of the joint administrators appointed by Harbour Guidance Pty Ltd, the company has fought for five years to revive the 53-year-old brand.
Unfortunately, the market conditions have made it impossible to sustain the physical stores.
“The owners have done everything they can to keep Jeanswest going, but… sustaining bricks-and-mortar stores is not viable and unlikely to improve,” Mr. Bainbridge explained.
Support for Affected Staff
The administrators are aware of the significant impact this decision will have on Jeanswest employees.
Mr. Bainbridge acknowledged the difficulties faced by staff, saying, “This is a hard day for hundreds of Jeanswest team members… we will be working directly with the team members to provide clarity and information about the next steps.”
What’s Next for Jeanswest?
As the administrators begin the process of restructuring the business, all store stock will go on immediate sale.
Mr. Bainbridge confirmed, “We will be opening the doors of all stores and selling online to clear all stock to secure a return to creditors.”
This means customers can expect significant discounts and sales in the coming days.