Fashion label collapses into liquidation owing $3.6m, assets sold to competitor

A Victorian fashion company has become the latest casualty in Australia’s struggling retail sector after collapsing into liquidation, racking up millions in debt.

A Victorian fashion company has become the latest casualty in Australia’s struggling retail sector after collapsing into liquidation racking up millions in debt.

A Victorian fashion company has become the latest casualty in Australia’s struggling retail sector after collapsing into liquidation.

Last Tuesday, Melbourne-based retailer Nobody Denim went into voluntary liquidation.

Nobody Denim supplied its apparel to The Iconic, David Jones and more than 100 other operators across Australia and New Zealand.

The business reportedly made $5.6 million in revenue in the last financial year, with a customer base of 60,000.

Nobody Denim had been operating for 23 years after John Condilis founded the brand in 1999.

According to an ASIC notice, Shane Deane and Nicholas Giasoumi of insolvency firm Dye and Co were appointed as liquidators on October 10.

The company owes $3.6 million to creditors. That included $2.64 million from its manufacturing producer, Denim 108, according to fashion trade press publication RagTrader.

It comes after The AFR reported that the retailer had axed 40 jobs in August, raising questions about its cash flow.

But luckily for fans of the brand, Nobody Denim’s assets have since been sold to a competitor, meaning their products will still be available to purchase.

Nobody Denim is a popular Australian brand.

Queensland fashion brand Outland Denim has snapped up the brand, and five workers have been retained to continue operating the business.

On Monday, CEO and co-founder of Outland Denim, James Bartle, emailed the company’s subscribers to announce its acquisition of Nobody Denim.

In his email, Mr Bartle said across his brand and the newly acquired Nobody, they now are now stocked on the shelves of 170 Australian retailers.

In a statement to news.com.au, Mr Bartle said they bought assets of Nobody, not the company itself. 

"As such we are not liable for any company debts accumulated," he said.

"But it is my understanding that the receivers appointed to oversee the liquidation will settle these matters in due process."

The five workers that have been brought across to his business had lost their jobs prior to him taking them in.

"Although we are grateful for the opportunity to take the brand forward, we also want to acknowledge all those who have lost their jobs in this unfortunate outcome.

"I'd also like to acknowledge the previous owners of the brand who put 25 years into building Nobody as one of the most well respected Australian brands actively investing into the Australian fashion industry."

News.com.au has contacted the liquidators for comment.

Nobody Denim is sold on The Iconic, among other publications.

Retailers are dropping like flies in recent months amid the softening market.

In June, another Victorian retailer that had been around the block for 16 years called Design A Space shut down.

Popular US shoe brand Rockport, which sold its products through Australian retailers including The Athlete’s Foot and David Jones, filed Chapter 11 bankruptcy proceedings.

Yet another popular shoe retailer, Bobux, went into receivership but was eventually bought out by another company.

In April, clothes seller EziBuy, which had an online presence across Australia and New Zealand, also went into voluntary administration, after suffering a 51 per cent decline in sales.

Iconic music and entertainment retailer Sanity shut down all 50 of its stores across Australia at the end of March, as the pandemic took a toll on the business, although it continues operate in a digital space.

In February, Australian prestige clothes firm Alice McCall went into liquidation. News.com.au reported that the company owes $1 million to creditors.

Before that, in January, 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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