Aussie retailer Jeanswest becomes latest brand to enter voluntary administration

Yet another Australian retail chain could be set to disappear from the high street as it was confirmed on Wednesday that Jeanswest has entered into voluntary administration.

The iconic denim brand is the latest Aussie label to go under, with KPMG being named as voluntary administrators of the chain’s Australian operations.

Having opened its first store in Perth in 1972, Jeanswest now boasts 146 stores across the country and employs a total of 988 members of staff, however these stores and jobs are now at risk. The chain’s operations outside of Australia are said to be unaffected by the administration process.

The company will continue to operate as usual while administrators conduct an “urgent analysis” of the business, reports News.com.au.

KPMG partner Peter Gothard said: “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.”

Many people took to social media to discuss the troubling news, with one person writing: “Yet another retail outlet goes into Voluntary Administration (Jeanswest) just something to remember when the current PM says ‘How good is the economy’.”

Another said: “Jeanswest collapses into voluntary administration, 988 jobs at risk This is The Morrison “strong economy” in action. Stagnant wages, insecure work, reduced consumer spending, jobs destroyed.”

While another commented: “Clothing retailer Jeanswest has collapsed into administration – Its 146 stores are at risk of closure – 988 jobs are at risk The economic narrative that ‘she’ll be right’ this year is looking like it may be on increasingly shaky ground.”

However others suggested that it was not a sign of the state of the economy, but rather an indication of “poor quality” goods. One person tweeted: “I can see that JeansWest; Bardot and other chains are going under, but when did you last buy something there? The quality was AWFUL, the styles hideous and only suited really to size 8 teenagers. They didn’t go with their market. Witchery survives – it knows its market.”

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Just last month, iconic Australian department store Harris Scarfe went into administration after 169 years of trading. The chain, which sells everything from clothing to homewares and appliances, is one of the country’s oldest brands and had a total of 66 stores across the country and employed more than 1,800 members of staff.

The news was confirmed on December 11 after Deloitte Restructuring Services had been appointed as administrators of the chain. A statement released at the time by Vaughan Strawbridge from DRS said: “Harris Scarfe is a longstanding retail institution. We will be making every effort to secure a future for the business and intend to commence an immediate sale of business process.”

Following the news, Harris Scarfe was forced to close 21 stores across the country, including the flagship Rundle Mall store in Adelaide, while more than 40 will continue to trade.

Jeanswest is just the latest in a long line of Aussie retailers to find itself on the brink of collapse in recent years, following the likes of Roger David, which folded in December 2018, Ed Harry, Napoleon Perdis and Laura Ashley. Topshop, Marcs and David Lawrence are also among those who are now out of business or struggling in the Australian market.

While iconic fashion brand Esprit also ceased trading in Australia and New Zealand earlier this year when all 67 of the chain’s remaining stores were shut down due to poor performance compared to its other stores around the globe, particularly in Asia.