TM Lewin goes into voluntary administration as coronavirus continues to hammer businesses
A popular retail outlet has become the latest business victim of the coronavirus pandemic, with the jobs of 40 staff across Australia now in limbo.
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An iconic maker of mens shirts and suits has fallen into administration, placing the future of its Melbourne stores and 40 staff in doubt.
Administrators say the Australian collapse of TM Lewin is another casualty of the pandemic that is ravaging the retail sector.
The local collapse of TM Lewin comes after its UK parent failed, with dozens of stores closed and hundreds of workers out of jobs as the company moved sales online while it attempted to restructure to survive.
Stuart McCallum, Adam Nikitins and Colby O’Brien, directors of Ernest & Young’s Melbourne office, were appointed joint administrators of T.M. Lewin Australia Pty Ltd when it went into administration earlier this month.
“This is another unfortunate example of a retail business which has needed to call in Administrators because of the impact of COVID-19,” Mr McCallum said.
“The TM Lewin brand is very well known and respected in the Australian market. There would not be too many business people in Australia without a TM Lewin shirt, suit or tie in their wardrobe.”
TM Lewin Australia employs about 40 people, in Melbourne, Sydney and Brisbane. It has three local stores, located in the CBD and Chadstone.
The Herald Sun understands creditor meetings have already begun.
Despite the turbulent impact the coronavirus pandemic was having on the economy, Mr McCallum said administrators hoped to save the Australian arm of the company.
“We are working with the Administrators of TM Lewin in the UK to ensure the Australian business has the best chance of continuing in Australia, and the potential impact on employees, landlords and other creditors remains at the forefront of our thinking,” he said.
TM Lewin’s trouble comes just weeks after swimwear brand Seafolly fell into voluntary administration with more than 100 jobs at risk.
Industry figures have repeatedly warned that the end of a moratorium on insolvent trading in September and businesses on repayment holidays having to soon restart payments will lead to a tsunami of company failures.
A survey by the Australian Restructuring and Insolvency Turnaround Association for insolvency professionals found 42 per cent of respondents believe we “very likely” to see a major spike in insolvencies once stimulus like JobKeeper and other protections end by October, while a further 32% view that spike as “likely”.
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