Collapsed company Alice McCall owes $1m to creditors including ATO and landlords

The fashion retailer collapsed into liquidation last week and now it’s been revealed it’s racked up a trail of debt with the ATO, landlords and even its own staff.

Collapsed fashion label Alice McCall owes more than $1 million to creditors.

Last Friday, on February 17, the prestige retailer, which was founded by eponymous fashion designer Alice McCall, went into liquidation.

Matthew Kucianski of Worrells was appointed as the liquidator and has now revealed to news.com.au that the company had racked up a seven figure debt.

The debt “will exceed $1 million” according to Mr Kucianski at this early stage of his investigation.

Creditors are largely the ATO and the landlords of Alice McCall’s 14 stores across Sydney, Melbourne and Brisbane.

All the stores have since been shut down. Alice McCall clothes are sold through several online resellers including at mega e-commerce site The Iconic.

The liquidator is currently dealing with stock and a number of clearance sales are underway.

The Instagram post announcing Alice McCall will be shutting their doors for good.

Retail trade press publication RagTrader claimed to have obtained documents that showed Alice McCall owes $677,922.93 to the Australian Taxation Office, which is its largest debt.

Landlords then fell into the second biggest debt category.

Vicinity Centres is owed $200,986 because Alice McCall had stores at Emporium Melbourne and Queens Plaza, operated by the same landlord.

There’s a further $107,933 owed to its outlet in Westfield Sydney in the CBD.

Then the brand also owes Manful Beaded Fashion Limited in Hong Kong for $94,220, Rakuten Marketing Australia for $23,076 and Farfetch, a retail platform, for $6,000.

These documents also stated that the founder Alice McCall, was owed $115,000 in unpaid leave entitlements. A senior staff member is also reportedly owed $15,000 for long service leave.

It also has some tiny debts, reportedly owing online fashion marketplace AirRobe just $187 while Australian fashion brand Cotton On is owed even less, at just $37.71.

The liquidator would not go into more detail and confirm this with news.com.au. They also did not reveal how many staff have been impacted by the collapse.

Alice McCall waves goodbye to her 20-year brand.

Founded in 2004 by eponymous fashion designer Alice McCall, the company fell into hardship during the Covid-19 pandemic.

In November 2020, the company went into voluntary administration.

Worrells was not involved in the voluntary administration but said the restructuring ultimately did not work.

On the weekend, Ms McCall broke her silence over her company’s demise, writing on social media: “I have come full circle with the brand, Alice McCall.

“It is time to close the doors, making space for a new chapter in my life.

“I want to say thankyou and acknowledge all the people that have worn, supported and loved the brand over the years.”

Liquidation firm Worrells said it wanted to encourage Australians “to continue to support the brand” by engaging in online sale campaigns they are running to recoup losses.

Alice McCall designs at a Melbourne fashion week last year.

Alice McCall is the latest in a string of collapses that hit the Australian retail sector after Covid-19 stimulus packages ran dry.

Last month, furniture seller Brosa fell into liquidation after its restructuring attempt failed, leaving behind debts of $24 million, including $10 million to customers from unfulfilled orders.

In July last year, trendy sunglasses business Soda Shades also went into administration owing $2.3 million, and just a week before, sneaker company Sneakerboy also folded with $17.2 million owed to more than 100 creditors.

Online fashion giant Missguided also had no choice but to call in administrators after failing to secure a rescue bid, with big name brands like The Iconic and Myer selling its wares prior to its collapse.

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