Australian fashion company Jeanswest has entered voluntary administration, with over 90 bricks-and-mortar stores set to close and more than 600 jobs at risk, marking another blow to Australia’s struggling retail sector.
Parent company Harbour Guidance Pty Ltd appointed Lindsay Bainbridge, Andrew Yeo and David Vasudevan of Pitcher Partners Melbourne as joint administrators on Wednesday.
The company cited prolonged tough trading conditions, a drop in discretionary consumer spending and elevated cost-of-living pressures as key drivers behind the decision.
“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,” Bainbridge said.
“They deeply regret the impact of store closures on their team members and their customers.”
All stock to go on sale
All stock will be immediately discounted as part of a clearance sale, with administrators confirming that gift cards and loyalty points will be honoured during the sale period.
Jeanswest's online operations are expected to continue, with restructuring options under consideration.
Founded in Perth in 1972, Jeanswest became a staple of Australian shopping centres through the 1980s and 1990s.
It was last placed into administration in January 2020, before being rescued by Hong Kong-based Harbour Guidance. This latest collapse ends a five-year effort to revive the brand.
The closure follows a string of recent fashion retail failures, including Mosaic Brands, Ally Fashion, Ed Harry and Roger David.
Queensland University of Technology marketing professor Gary Mortimer said the latest developments underscored structural shifts in consumer preferences and fierce competition.
“It’s the perfect storm,” Mortimer said. “Older, mid-tier fashion brands don’t really have a point of difference... and younger consumers are now shopping at fast-fashion giants or online platforms.”
A creditors' meeting is scheduled for April 4.