Colette by Colette Hayman: 35 stores and 300 jobs saved after new owners buy handbag empire

A handbag empire that originated on the northern beaches has been saved. However, the number of stores have been dramatically slashed. See which stores have been saved here:

Bernie Brookes at the Pitt St Mall in Sydney. He is a retail expert and a former chief executive of Myer. John Feder/The Australian.

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A northern beaches-based handbag and accessories empire has been dramatically saved by new owners, despite the economic uncertainty in retail caused by COVID-19.

Colette by Colette Hayman will be headed by ex-Myer and Edcon CEO Bernie Brookes who will be the major shareholder and executive chairman, with John Skellern as Chief Executive Officer.

The business will have a much reduced store footprint, but will be expanding the online side of the business.

At its height there were 138 stores across Australia and New Zealand, with sales in excess of $140m. Mr Brookes said his group will retain 35 stores. The future of the other stores remains unknown at this stage.

COLETTE STORES TO BE RETAINED:

Parramatta, NSW

Liverpool, NSW

Fountain Gate, VIC

Werribee, VIC

Highpoint, VIC

DFO Homebush, NSW

Hurstville, NSW

Penrith, NSW

Mt Gravatt, QLD

Chermside, QLD

Centro Bankstown, NSW

Watergardens, VIC

Carousel, WA

Northlakes, QLD

Blacktown, NSW

Macarthur Square, NSW

DFO Harbourtown, QLD

DFO Brisbane Skygate, QLD

Tea Tree Plaza, SA

Mt Druitt, NSW

Rouse Hill, NSW

DFO South Wharf, VIC

DFO Essendon, VIC

Merrylands, NSW

Epping, VIC

Knox City, VIC

Cairns Central, QLD

Plenty Valley, VIC

Ispwich, QLD

Southland, VIC

Browns Plains, QLD

Craigieburn, VIC

Willows, QLD

Broadmeadows, VIC

Tuggeranong, ACT

All other stores will close over the next week or two. The Warringah Mall store will close.

But the new owners have said they will not be taking it on.

Colette Hayman, an entrepreneur from Manly, was known as the ‘queen of handbags’ after she built the business into a global fashion brand.

It went into voluntary administration earlier this year.

The new owners say they have been able to retain approximately 300 employees and has concluded landlord negotiations to ensure continuity of trade.

The new owners are now in place for the CBCH group of companies, trading as Colette by Colette Hayman and announced the news today following a robust process with Deloitte Restructuring Services.

Colette Hayman pictured in 2016 with her range of designer handbags at the Colette by Colette Hayman headquarters in Brookvale. Picture: Troy Snook.

“The decision to purchase the business was made easier by the work of Deloitte who ensured continuity in trading, not only through the period of administration, but also during the uncertainty created by the COVID-19 pandemic,” Mr Brookes said.

“Having John Skellern as CEO with an experienced group of current managers and staff will provide a tremendous kick start to the business, with its own in-house digital, design and marketing team in place to ensure a focus on online sales and digital.

“The buying team has maintained a strong interface with the suppliers and we have completed landlord negotiations”.

Generic views of Colette Hayman Store in Warringah Mall, Brookvale, taken on 4th February 2020. Colette stores have gone into voluntary administration. (AAP Image / Julian Andrews)

In recapitalising the business, Mr Brookes said the “new Colette footprint comprises only one-third of the original stores, and a fledgling online business, which with dedicated resources and focus will deliver one-third of total revenue”.

“My decision to take the majority shareholding will be viewed as contrary to the current difficulties facing bricks and mortar retail,” he said.

“Owning a fashion retail chain is about true omnichannel retail; a strong online presence and physical stores.

“Our purchase will enable the business to land in a future post COVID-19 in advance of any cessation of lockdowns and restrictions in the future, and 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.”

Former Myer boss Bernie Brookes is a major shareholder in an investor team that has bought up Colette by Colette Hayman. Photograph by Paul Jeffers The Australian.

Mr Brookes added that key staff have also been retained and the plan was to “stabilise and then build the brand while investing in the business”.

“In addition, we have a strong supplier base who will continue to support Colette including providing much needed fresh stock immediately to stores,” he said.