Administrators KPMG confirm 37 stores will close with 263 employees made redundant

Aussies were stunned when news broke that fashion empire Jeanswest was folding, but now the extent of the disaster has been revealed.

A staggering 263 Aussie Jeanswest employees have lost their jobs with 37 stores set to close, administrators have confirmed.

Last week it was revealed KPMG had been appointed as voluntary administrators following the shock collapse of the denim icon.

Today, KPMG voluntary administrators Peter Gothard and James Stewart have confirmed they had commenced the restructure of the Jeanswest business as the sale of business campaign gets underway.

Mr Gothard and Mr Stewart advised that as part of the restructure, 37 stores would be

closed and 263 employees would be made redundant.

In a statement, Mr Stewart said the decision to restructure the business was difficult but necessary and that it offered the best chance of attracting a new owner.

“The decision to proactively restructure the business early in the administration process has not been taken lightly,” Mr Stewart said.

“We are very mindful of the serious impact store closures and staff redundancies have on people’s lives.

“However, we must also work to maximise the opportunity for this business to be sold or restructured – to give it the best chance to continue.”

Mr Stewart said the administrators would look to redeploy team members where possible, with support also to be provided through Jeanswest’s Employee Assistance Program for those affected.

The pair thanked Jeanswest staff and other stakeholders for their “support and patience” during the process.

So far 37 stores have been earmarked for closure.

KPMG confirmed Jeanswest stores in Blacktown, Castle Towers, Charlestown, East Gardens, Macarthur, Kotara, Wetherill Park, Tweed City, Shell Harbour, Singleton and Miranda in NSW would close, along with outlets in Burleigh, Castletown, Chermside, Earlville, Lismore, Myer Centre and Maroochydore in Queensland.

In WA, outlets in Mirabooka, Carousel, Centrepoint, Karrinyup, Mandurah and Rockingham will close as well as Marion, Castle Plaza and West Lakes in South Australia and Hobart City in Tasmania.

Meanwhile, Victorian stores in Doncaster, Eastland, Echuca, Forest Hill, Karingal, Southland, The District Docklands and Watergardens will also close.

A total of 263 employees will be made redundant – including 21 from Jeanswest’s head

office in Melbourne.

The first meeting of creditors of the company will be held in Melbourne on Tuesday, January 28.

The much-loved Australian retail brand opened its first store in Perth in Western Australia in 1972 thanks to founder and denim king Alister Norwood.

Today the business employs 988 people in 146 stores across the country.

It is best known for its popular denim range as well as maternity wear and other wardrobe staples as well as the slogan “Jeanswest fits best”.

RETAIL WOES

The announcement comes hot on the heels of a slew of other high-profile Australian businesses that have folded in the first fortnight of 2020.

It started early on January 7 when it was revealed department store Harris Scarfe was set to shut 21 stores across five states over the course of just one month after the retailer was placed in receivership in December.

Just days later, McWilliam’s Wines – the country’s sixth-largest wine company that has been run by the same family for more than 140 years – announced it had also appointed voluntary administrators.

Then it was popular video game chain EB Games’ turn, with the business confirming it was closing at least 19 stores across the country within weeks, while fashion chain Bardot is also planning to shutter 58 stores across the nation by March.

EB Games will close at least 19 Aussie stores. Picture: AAP Image/Matt Loxton

In January it also emerged Curious Planet – the educational retailer previously known as Australian Geographic, which is owned by parent company Co-op Bookshop – would pull 63 stores across Australia after failing to find a buyer for the brand, while tech giant Bose also revealed it would close all Australian stores and 119 across the globe largely as a result of the rise of online shopping.

The total confirmed number of bricks-and-mortar stores earmarked for closure has already risen to 161 this year alone.

2020s dismal first fortnight for retail follows a horror 2019 that brought the collapse of a slew of Aussie businesses, with some international players also folding in recent months.

Last January, menswear retailer Ed Harry went into voluntary administration, and a week later, Aussie sportswear favourite Skins also revealed it was on the brink of failure after applying for bankruptcy in a Swiss court.

At the end of the month, the Napoleon Perdis beauty empire announced the cult make-up chain’s 56 Aussie stores had closed for stocktake. Administrators were appointed, and scores of stores have since collapsed.

Footwear trailblazer Shoes of Prey also met its demise in March last year along with British fashion giant Karen Millen, which in September revealed it would soon shut all Aussie stores, leaving around 80 jobs in peril.

While 21 Harris Scarfe department stores will shutter. Picture: Brendan Radke

In October, celebrity chef Shannon Bennett’s Melbourne burger chain Benny Burger was also placed into administration, followed by seven Red Rooster outlets in Queensland just days later and then Aussie activewear sensation Stylerunner, which has since been sold to Accent Group Limited.

In November, it was revealed that popular furniture and homewares company Zanui was in trouble after it abruptly entered voluntary administration, leaving angry customers in the lurch.

Later that month, Muscle Coach, a leading fitness company, was put into voluntary administration after a director received a devastating diagnosis and the company racked up debts of almost $1 million.

Then it was the famous Criniti’s restaurant chain’s turn to enter into voluntary administration, with several of the 13 sites across the country set to close for good. It was closely followed by discount legend Dimmeys.