Retailer behind Colette fashion brand appoints administrators

The owner of the Colette and Daily Edited fashion brands says it’s ‘business as usual’ despite appointing administrators to its nationwide chain of 60 stores and 400 staff.

A Colette by Colette Hayman store

Administrators have been appointed to Marquee Retail Group (MRG), the owner of the Colette and Daily Edited fashion brands chaired by former Myer boss Bernie Brookes.

MRG said it had felt the impact of an unplanned downturn in sales from October last year as a result of rising inflation and increased interest rates.

That had been compounded by its ongoing debt arrangement with the Australian Taxation Office (ATO), which dates from the Covid-19 induced drop in sales.

MRG said while under voluntary administration it would be “business as usual.” The company said it aims to keep all 60 stores open, with no plans to reduce staff numbers from the current 400 at this stage.

Board chairman Mr Brookes said the decision to appoint administrators was about securing the future of the group and its employees, while emerging on the other side of voluntary administration. “We hope to work with all parties to ensure an outcome, either with a sale or a deed of company arrangement recommended in time by the administrator,” said Mr Brookes. “The board regrets that these events have come to pass and acknowledge all the group’s employees for their hard work and contribution. For our customers, everything will remain consistent as our stores continue to operate and receive regular stock.

“As for our staff, their routine remains unchanged until the administrator decides upon an outcome and a way forward.”

Troubled times again for Colette by Colette Hayman.

The company owns Colette by Colette Hayman, a handbag, jewellery and fashion accessories business, and the The Daily Edited, a luxury fashion brand, specialising in monogrammed lifestyle leather accessories.

Administrators Domenic Calabretta, Mitchell Ball, and Richard Lawrence of Mackay Goodwin will explore the potential sale of the business whole or in part. “The company values the continued support and understanding of its customers, suppliers, and employees and will maintain transparent and open communication as it navigates through this process,” MRG said. “It remains focused on finding a constructive resolution while upholding its obligations to its valued stakeholders.”

Mr Brookes took over the business in 2020 after it emerged from an earlier voluntary administration. Under Mr Brookes, the company operated a slimmed down bricks-and-mortar model comprising a store footprint of only one-third of the original stores. “Our core offer of handbags and jewellery will continue, with a fresh focus on the strong performing stores retained, and a significant investment in the digital space,” Mr Brooks said at the time.

The brand was founded by designer Colette Hayman – known as the “Queen of Handbags” – in Australia in 2010, and was previously pulling in sales in excess of $140 million.

The Australian economy is in the middle of a “perfect storm” with insolvencies rising to an almost decade high last month as businesses struggle with crushing debt and a shortage of cash. Australian Securities and Investments Commission figures show there have been 2566 insolvency appointments so far this calendar year to March 31, compared with 1881 during the same period in 2023.

Originally published as Retailer behind Colette fashion brand appoints administrators