Seafolly the latest Australian fashion chain to shut amid COVID
The economic disaster caused by coronavirus has claimed another victim in the fashion world with swimwear brand Seafolly entering voluntary administration, joining a growing list of Australian brands which have shut up shop.
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Coronavirus has claimed another victim with popular swimwear brand Seafolly placed into voluntary administration.
A statement from administrators Scott Langdon and Rahul Goyal of KordMentha Restructuring said the appointment was made due to the crippling financial impact of COVID-19.
Mr Langdon said Seafolly customers would not be affected while a sale of the business commenced.
“All Seafolly gift cards and the popular Beach Club Rewards points will continue to be redeemable at all Seafolly stores. We encourage all loyal Seafolly customers to come to the retail stores and redeem their Beach Club Rewards, plus earn more points,” he said.
Seafolly was founded in 1975 and has grown a network of 44 stores across Australia and 12 overseas.
The Australian retail sector has been hit hard over recent months, firstly during the bushfires and most recently due to the coronavirus. Many businesses have not survived. Here, Confidential takes a look at some of the retailers to have been affected:
TUCHUZY
Bondi fashion institution Tuchuzy was placed into voluntary administration earlier this month after 25 years in the business.
The retailer will continue to trade with founder Daria Sakic determined to push through with a restructured business over the coming months.
Suppliers were notified of the decision on June 3.
An attached circular to suppliers detailed the voluntary administration procedures from administrator Barry Kogan.
“It is our intention to continue trading Tuchuzy’s business while we undertake an urgent assessment to determine the best course of action to preserve its business,” Kogan wrote.
Tuchuzy sells some of Australia’s top designer brands, including Dion Lee, Ena Pelly, Ksubi and Senso. International brands sold include Balenciaga, Adidas x Alexander Wang and Helmut Lang.
PAS GROUP
The fashion heavyweight, responsible for brands like JETS Swimwear, Review, Black Pepper and Yarra Trail went into voluntary administration at the end of May.
The retailer has 225 shops across Australia and New Zealand and over 1300 employees.
The PAS Group decided to shutter their brick and mortar stores on March 27th, and registered for the JobKeeper scheme for stood down employees.
On May 8th, they announced the progressive reopening of stores, but citing “unfavourable market conditions”, decided to go into voluntary administration just 21 days later.
The stores will still trade as normal and the board of directors still believe the business to be solvent.
TARGET
In May, the discount department store owned by Wesfarmers, announced it would be closing as many as 75 of it’s stores across the country.
It also announced that it would covert a further 90 stores into Kmart stores, which it also owns.
Target Country will stop existing altogether, with some turning into Kmarts and others shutting down for good after Christmas trading this year.
Thousands of job losses are expected, but Westfarmers has announced “redeployment opportunities” for Target employees within other brands.
HARRIS SCARFE
In January the department store announced it would shut 21 stores across the country after it was placed into receivership in December.
Employees at the more than 40 remaining stores were thrown a lifeline when Spotlight Group purchased the company in April.
According to the receivers’ report, weekly retail turnover slumped from $5 million before lockdown to $1 million during the pandemic.
59 employees were made redundant just before the JobKeeper payment came into play.
JEANSWEST
KPMG were appointed as administrators of the denim brand in January after the companies originally behind it went under.
At the height of their success the chain had over 200 stores, but after being sold to Hong Kong Company Harbour Guidance in March, just 98 remain.
Jeanswest’s woes predated the pandemic, with a weak Christmas trading period and stiff online competition leading to 45 stores trading at a loss in the last financial year.
Jeanswest closed all their stores during lockdown, and time will tell if the troubled denim brand can survive as stores reopen.
COLETTE BY COLETTE HAYMAN
The handbags and accessories chain was placed into voluntary administration in late January, leaving 140 stores in limbo.
The collapsed retailer had a small win in April, when the Federal Court ruled they did not have to pay a cent in rent on their 93 stores.
The handbag chain, founded by the former Diva owner, sells around 3 million handbags a year.
BARDOT
In January, the fashion chain announced it would shut 58 of it’s stores, leaving 530 people without jobs, after entering administration in November.
Only 14 stores remained in NSW and Victoria.
Victims to a downturn in retail spending in the 2019 Christmas season, Bardot couldn’t get back on it’s feet.
In a further hit to staff, the coronavirus pandemic forced the shut down of remaining stores, and now the fashion retailer trades solely online.
ALEX PERRY
Leading Australian fashion designer Alex Perry closed his only bricks and mortar store in Sydney’s Strand Arcade in February, announcing he will focus solely on online.
“Online sales are almost four times what the bricks and mortar is making,” Perry told The Daily Telegraph.
“Why would I renew that lease for another three, four, five years when it is far more economical and we make a lot more money online that what we do with all the expenses you incur when you have bricks and mortar.”
Perry hasn’t ruled out opening another store in the future, but sees himself as more of a wholesale designer.