Retailer PAS Group collapses into administration putting 1300 jobs at risk
The Melbourne-based retailer behind fashion labels including Black Pepper and Review and Yarra Trail has collapsed into administration — putting 1300 jobs under a cloud of doubt.
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The retail group behind fashion labels including Black Pepper and Review and Yarra Trail has collapsed into administration putting 1300 jobs under a cloud.
Melbourne-based PAS Group this morning announced it had placed itself into voluntary administration as the coronavirus crisis dramatically increases the pressure on a retail sector which has been in a state of flux for a number of years.
PAS operates 225 stores and owns or licences a portfolio of brands which also includes Review, Jets Swimwear, Bondi Bathers and Marco Polo.
It also designs, manufacturers and wholesales clothing for brands such as Everlast, Slazenger, Dunlop, Russell Athletic and Mooks.
Chief executive Eric Morris said he was of the view that the company was solvent but administration would provide an opportunity to restructure the business.
“The Australian retail sector was already facing significant challenges prior to the COVID-19 pandemic,” he said this morning.
“While the board is of the view that the company is solvent, given the issues as a result of unfavourable financial market conditions, the COVID-19 crisis and the challenges of restructuring in that environment, it felt that administration was the best way to affect change while protecting all stakeholders.”
Mr Morris said the company entered voluntary administration “with the strong desire to restructure the group and allow it to continue operating strongly and sustainably into the future”.
“We know this is a challenging time for our employees and their wellbeing will continue to be at the front of our minds throughout the voluntary administration process,” he said.
Stores will continue trade as normal, in line with coronavirus social distancing restrictions, and all store credits and vouchers will be honoured, the company said in a statement.
A tsunami of collapses and store closures has swept over the nation’s $320 billion retail sector in recent years.
Wesfarmers, the Perth-based conglomerate whose retail holdings include Bunnings, Officeworks and online business Catch Group, last week announced about half of all Target stores would either close of be converted to Kmarts.
Youth fashion chain G-Star was placed into voluntary administration earlier this month while camping chain Aussie Disposals exited the voluntary administration with a slimmed down store network, having shut one-in-four stores including all shopping centre outlets.
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