Jeanswest’s 90 stores to close and 600 workers to lose their job as administrators called in

Fashion chain Jeanswest has collapsed for a second time in five years leading to the imminent closure of all 90 stores and the loss of jobs for about 600 of its staff.

Jeanswest has collapsed and been placed into voluntary administration.

Fashion retailer Jeanswest has collapsed for a second time in five years, which will lead to the closure of 90 stores and the loss of jobs for 600 retail staff.

Harbour Guidance Pty Ltd, a subsidiary of Hong Kong’s Harbour Guide Ltd, has called in an administrator, which will close down all of the chain’s bricks-and-mortar outlets while exploring opportunities to restructure the business as a potentially online-only retailer.

Five years ago the company, controlled by Hong Kong billionaire Chun Fan Yeung, bought Jeanswest out of administration after it previously hit financial trouble.

Lindsay Bainbridge, Andrew Yeo and David Vasudevan from Pitcher Partners in Melbourne have been appointed to oversee the administration.

They said they had commenced their assessment of the company’s debts to suppliers, creditors and employees, and had so far discovered a significant related party debt of about $40m.

Mr Bainbridge said the company had fought for five years to revive the 53-year-old brand but had concluded it was time to step back from physical stores to focus on online retail.

“The owners have done everything they can to keep Jeanswest going, but market conditions mean sustaining bricks-and-mortar stores is not viable and unlikely to improve,” he said.

“They deeply regret the impact of store closures on their team members and their customers, and we will be working now with teams across the country.

“This is a hard day for hundreds of Jeanswest team members and we will be working directly with the team members to provide clarity and information about the next steps.”

Jeanswest opened its first store in Perth in 1972, and had grown too close to 150 stores before its collapse in 2020, when at the time it employed about 1000 people.

It is the latest in a string of retailers to fall victim to the challenging economic environment and decline in discretionary spending as consumers continue to tighten their belts.

Retail group Mosaic Brands – owner of Millers, Rivers, Crossroads, Katies, Noni B and Autograph – collapsed in October 2024 and administrators were unable to find a white knight to rescue any of the brands. Administrators confirmed in January that all of the stores would

close.

While Jeanswest’s administrator says it will close all of the physical stores “in due course”, it says the brand and online sales could survive, as “all restructuring options remain open”.

Mr Bainbridge said he expected all store stock to go on immediate sale as his company began the process of restructuring the business. “We will be opening the doors of all stores and selling online to clear all stock to secure a return to creditors,” he said.

Jeanswest operates several stores in New Zealand, which are not part of the administration process and will continue to operate.

The mid-market retailer is best known for its denim products and wardrobe staples, pitting it against rivals such as Just Jeans and Jay Jays – both recently acquired by Myer as part of executive chair Olivia Wirth’s bid to turn around the struggling department store.

The earnings of mid-market clothing retailers have suffered as more customers migrate to online shopping, and amid tough trading conditions, higher interest rates and cost-of-living challenges.

Jeanswest’s second collapse in five years follows warnings from a string of retailers in recent weeks about subdued trading conditions in Australia. The South African owner of fashion house Country Road recently said retailers had been grappling with a “retail recession” for 18 months.

But analysts argue it is a case of “the haves and have nots” in the sector, with some chains such as youth-focused Universal Store reporting strong sales growth, while others struggle to compete with the growing competition from online retailers like Shein, Temu and Amazon.

Jarden research recently found that 55 per cent of retailers reported an acceleration in January and February trade against the first half, a good result in the context of moderating economic trends.

Originally published as Jeanswest’s 90 stores to close and 600 workers to lose their job as administrators called in