Alice McCall goes into voluntary administration due to COVID-19 pandemic
A top Australian fashion label has become the latest business victim of the coronavirus pandemic, with a number of staff facing job losses.
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Top Australian fashion label Alice McCall has entered voluntary administration “due to the unprecedented effects of COVID-19” with eight stores closing and a number of staff losing their jobs.
The label was launched by McCall 17 years ago and was popular with young Australians.
She said the decision to go call in administrators was made with a “heavy heart”, but the impact of the pandemic made it unavoidable.
“So it is with a heavy heart that due to the unprecedented effects that COVID-19 has had on our economy, as well as some unsustainable bricks and mortar rental obligations, I have had to make a necessary decision to edit down my business, with the objective of building a more sustainable business model for the future,” she said in a statement.
Four flagship stores are expected to remain open in Melbourne, Sydney and Brisbane, and McCall expected the business would continue to operate after the administration process was completed.
“I pride myself on being ethical, honest and transparent in business, and because of this I have had on majority a fantastic long-lasting committed team, this is a doctrine I live by. And through this process of change in my business, this I believe will only get stronger. I have still got plenty of drive in me to continue to create, and continue to connect with the alice McCALL customer. I intend to only get better, armed with the experience of 17 years of business under my belt, and the desire to keep on creating.”
She thanked her staff and customers for their support.
Ian Purchas and Jason Porter, of SVP Partners, have been appointed as Voluntary Administrators of the company.
Mr Purchas said McCall had been a responsible director and he believed the business would survive after restructuring.
“Unfortunately that will require the closure of a number of its stores, and the redundancy of some employees. These steps have not been taken lightly, but have been necessary to give the company the best chance of survival while retaining a large number of its team and providing a return to its creditors.”
Mr Purchas told the H erald Sun the objective was to keep the business trading, but in an altered model with a greater online focus. The Administrators expect to honour gift certificates up to $100 and store credits under 90 days from returns.
The administration period will run for five weeks.
The Australian retail sector had been devastated by the pandemic, and fashion stores had been particularly impacted.
Earlier this year, iconic Aussie bikini brand Seafolly went into voluntary administration in the but was saved from collapse by its former owner, while Tigerlily also went into voluntary administration.
Other retailers to collapse this year include Harris Scarfe, Jeanswest, Kikki K, and Bardot.
BUSINESSES THAT HAVE FAILED SINCE COVID-19 STRUCK VICTORIA
Originally published as Alice McCall goes into voluntary administration due to COVID-19 pandemic