Australian fashion label Ksubi goes into receivership

THE painful demise of Australian fashion label Ksubi continues with revelations the label is now in the hands of receivers.

The Ksubi offices in Roseberry / Picture: John Appleyard

THE painful demise of Australian fashion label Ksubi continues with revelations the label is now in the hands of receivers.

Just a week before Christmas, staff revealed the trendy street brand - founded by Dan Single and George Gorrow in 1999 - informed them receivers had been appointedcompany was in receivership and that they no longer had jobs. It's understood staff at the company, which has its headquarters at Rosebery, were also told they would not be paid their final week's salary or superannuation.

KSUBI PARENT COMPANY INTO ADMINISTRATION

As a final blow for the thirty employees, the company Christmas party scheduled for this week was also cancelled, according to a staff member.

It's understood the brand's six Australian stores will remain trading for the time being while receivers Jirsch Sutherland decide the 13-year-old label's future.

"A lot of people who have been there for quite a while who have left and are owed a substantial amount of super," said a source at the company. "It's very sad."

Another said the news came as a shock but staff were aware of the financial problems affecting the company in recent months.

THE KSUBI WEBSITE

The Ksubi offices in Roseberry / Picture: John Appleyard

In August the brand's parent company Bleach - now trading as Mentmore - was placed into voluntary administration after buying the company in 2010.

CEO Mark Byers said at the time the move was necessary to keep Ksubi and its other fashion label Insight, afloat.

"Both Ksubi and Insight are sought-after in the youth markets in Australia, Europe and the United States - losing them would have been a blow to the Australian industry, and meant the loss of many direct and indirect jobs in Australia and overseas," Byers said in August.

Jirsch Sutherland said the receivers were assessing the financial position.

"Whilst there has been some necessary rationalisation of overheads including staff at head office, the companies are continuing to trade seven retail outlets throughout metropolitan Melbourne, Sydney and Brisbane, in addition to a popular online retail store," the firm said in a statement.

"The companies are also continuing to operate a wholesale business, selling locally and internationally the three brands - Ksubi, Insight and Something Else," Jirsch Sutherland partner Andrew Spring said.

"We are continuing to trade with a view to identifying a purchaser for these businesses."

The news follows a year of bad news for the fashion industry, with lisa Ho, Kirrily Johnston, Bettina Liano and Collette Dinnigan all shutting their doors.