Luxury bridal company Pallas Couture strikes an eleventh hour deal with creditors

A celebrity-loved Australian bridal label has been saved from liquidation after striking a deal with creditors, sealing the fate of more than $1m in customer deposits.

High-end Australian bridal label Pallas Couture has been saved from liquidation. Picture: Pallas Couture

A high-end Australian bridal label loved by A-listers has been saved from liquidation after striking a deal with creditors.

Pallas Couture, which has a flagship studio in Sydney’s ritzy suburb of Paddington and is sold in the world’s most exclusive bridal stockists, entered voluntary administration last month.

But a whopping $1.2m in customer deposits will remain as continuing liabilities of the company, new documents lodged with the corporate regulator reveal.

The rescue plan, put forward by associated company Pallas Fashion Group, has been signed off on by unsecured creditors who have settled for just 4c on the dollar.

Employees were listed as being owed over $230,000, including $194,758 in superannuation and $38,761 in annual leave.

Others owed money included secured creditors ($99,180), trade creditors ($75,725), statutory creditors ($579,081), related party creditors ($197,000) and customers ($1.2m), bringing total liabilities to over $2.5m.

Employees were listed as being owed over $230,000. Picture: Pallas Couture

Cor Cordis administrators Jeremy Nipps and Thomas Birch recommended creditors agree to the deal, citing a greater return and “more certainty” than if the company was tipped into liquidation.

The deal will see employees’ superannuation paid out in full, compared to up to 86.5c on the dollar if the company was wound up.

Other employee entitlements will not be paid out.

The luxury wedding dress business, which has been featured in Vogue Australia and British Vogue, makes couture gowns starting from $23,000 and is sold across the globe including in Belgium, Italy, Germany, London, Los Angeles and New York.

Celebrities that have worn Pallas Couture gowns at their weddings include Bachelor star Snezana Markoski, American world and Olympic hurdles champion Sydney McLaughlin and bodybuilder and wife of English singer, songwriter and TV personality Olly Murs, Amelia Tank.

The luxury wedding dress business has been featured in Vogue Australia and British Vogue. Picture: Pallas Couture

The deal, known as a deed of company arrangement (DOCA), is expected to be executed at the end of this month.

Pallas Fashion Group, which also lists founder of Pallas Couture Joy Morris as its director, will provide a $290,000 cash contribution to be distributed to unsecured creditors.

Related party creditors will not receive a dividend.

All claims relating to bridal gowns or other garments that the company has failed or is yet to deliver, including deposits or prepayments, will remain continuing liabilities of the business.

The administrators entered into a licensing agreement with Pallas Fashion Group when they were appointed on May 1, which allowed Pallas Couture to receive funding for the business to continue trading during the administration.

“A key condition for completion of the DOCA is the mutual termination of the licence agreement between the company and Pallas Fashion Group,” a Cor Cordis spokesperson said.

“Until this condition is satisfied, Pallas Fashion Group will continue to operate the company’s business and may collect customer instalment payments in the ordinary course.

The deal is expected to be executed at the end of this month. Picture: Pallas Couture

“Cor Cordis will continue to work with all relevant stakeholders to facilitate the implementation of the DOCA and will provide further updates as appropriate.”

The administrators said Ms Morris attributed the company’s difficulties to a shift in the market, industry restructuring and poor economic conditions for business operations.

But Mr Nipps also attributed the collapse to an inability to manage significant debts owed to the tax office and “considerable” related party drawings, for which limited repayments had been made.

“Our preliminary investigations also indicate there was unpaid superannuation owed to employees from as early as 30 June 2023,” he said.

The company reported net profits in FY23 and FY24, followed by a net loss of $740,234 for the period 1 July 2024 to 1 May 2025, financial records reveal.

Total sales also decreased from $4m in FY23 to $3.4m in FY24 and $2.9m year-to-date.

Founded in 2001 by Ms Morris, Pallas Couture, which has studios in Sydney and Perth, has built a global reputation for exquisite designs that are intricate and extravagant, combining traditional elements of haute couture with a sleek, high fashion aesthetic.

It has a ready-to-wear line, with limited edition gowns priced between $5,500 and $8,000.

They also have handcrafted couture gown experience – where the bride creates their own bespoke dress – starting from $23,000.

Originally published as Luxury bridal company Pallas Couture strikes an eleventh hour deal with creditors