Jeanswest has become the latest company to feel the pinch of a tough retail market after announcing it has gone into voluntary administration.
The online boom and weak consumer spending is being blamed for the company’s demise.
Jeanswest has 146 stores across Australia and employs 988 staff with their futures now in doubt.
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KPMG has been appointed administrators and will work to conduct an urgent analysis of the business.
KPMG partner Peter Gothard says will do everything to try and salvage the company.
“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,” Mr Gothard said.
Jeanswest will continue to operate as normal for the time being.
KPMG retail restructuring practice leader James Stewart described Jeanswest as an “iconic Australian denim brand”.
“Like many other retailers, the business has been challenged by current tough market conditions and pressure from online competition,” Mr Stewart said.
The administration provides an opportunity for Jeanswest to restructure so as to better respond to the challenging Australian retail market.”
The first creditors’ meeting will be held in Melbourne on January 28.
The news comes on the back of the collapse of department store Harris Scarfe and women’s fashion chain Bardot.