Aussie footwear brand Wittner collapses into administration
Famous Australian footwear brand Wittner has collapsed, with administrators appointed to the more than century-old company citing rising cost pressures.
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Popular Australian footwear brand Wittner - which was founded more than a century ago - has collapsed into administration.
Deloitte insolvency experts Sal Algeri and David Orr were appointed joint administrators on Wednesday afternoon to three businesses that trade under the Wittner brand – Wittner Group Holdings, Wittner Retail Australia and Wittner Retail New Zealand.
Mr Algeri said the iconic women’s boot company will trade as normal as they undertake an urgent sale and/or recapitalisation of the business.
“We understand the appointment of Administrators will be particularly concerning to Wittner’s employees, as well the very loyal customer base it has built over decades,” he said.
“Please be assured that trade will continue on a business-as-usual basis as we conduct an urgent review of the group’s finances and seek expressions of interest from parties interested in the sale or recapitalisation of this iconic Australian brand.”
Wittner, which has its head office in Cremorne in inner-city Melbourne, is considered one of Australia’s leading footwear brands.
It has over 20 branded stores in Australia and New Zealand, over 25 concession stores across David Jones and Myer, and a multi-store e-commerce platform that trades across its own branded website, Myer, David Jones, and The Iconic.
It’s understood Wittner previously put itself up for sale in mid July 2023, amid a flurry of businesses hitting the market.
A statement from Wittner management said the company had achieved strong growth over the last twelve months in online sales and from the expansion of sites across the Myer network.
“However, the growth in sales has been eroded by cost pressures from rising wages and occupancy costs, and more recently challenging trading conditions and supply-chain disruptions,” they said
“We have invested in our range and teams over the last twelve months and remain committed to the Wittner business.
“We will work closely with the Administrators to achieve the best outcome for the business and its stakeholders.”
The company was established in 1912 by HJ Wittner.
He initially opened a store in Footscray, Victoria, and soon launched the first mail-order footwear business in the country.
The Wittner family has mostly been sold out of the business. It is now owned by British special situations investor Hilco Capital.
It sells its designer shoes from more than 60 locations, including department store David Jones.
The collapse follows fashion retailer Jeanswest calling in the administrators last month - its second collapse in five years.
Nearly 90 Jeanswest stores will close over the next six weeks, resulting in the loss of jobs for 600 retail staff.
Originally published as Aussie footwear brand Wittner collapses into administration
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