Iconic Australian fashion brand falls into voluntary administration

A popular fashion retailer has gone into voluntary administration, blaming a “highly cluttered” and “increasingly discount-driven market”.

The popular women’s fashion brand Bardot has announced it’s gone into voluntary administration.

The retailer, which employs about 800 staff over 72 stores across the country, blamed increasing competition and a “challenging” domestic market for its collapse.

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“Despite double-digit growth in online sales, and our highly successful expansion into the US and Europe, Bardot’s retail stores in Australia are competing in a highly cluttered, and increasingly discount-driven market,” CEO Basil Artemides said in a statement.

“Operating a national retail network in its current state is no longer sustainable.”

Bardot employs about 800 staff across the country. Picture: Brendan Radke

The retailer has appointed law firm KPGM to complete a sweeping restructure of the company, but has assured customers it will continue to operate on a “business as usual” basis for now.

“We are at the very start of the process, so many questions are yet to be answered,” restructuring services partner Brendan Richards said.

“However, I can confirm that Bardot store trading will continue on a business-as-usual basis while we undertake an immediate assessment of the business.

“Both gift cards and credit notes will also be honoured,” he added.

The Australian fashion brand launched in 1996. Picture: Facebook/Bardot

Bardot has 72 stores across Australia. Picture: Facebook/Bardot

The iconic Australian brand, which was launched in 1996, now joins a long list of fashion retailers that have collapsed in recent years, including luxury brand Oroton, Pumpkin Patch and Roger David.

But Mr Richards said he was determined to preserve Bardot’s “rich history of over 20 years of growth”.

“In the past five years, the business has grown significantly offshore and capitalised on its Australian heritage by distributing through high profile international department stores,” he said.

“Although, the company has experienced significant growth in overseas markets, it has faced a challenging domestic environment in recent times. We expect strong interest in the sale (and) recapitalisation process.”

Mr Artemides said Australia would “always remain (at) the heart of the Bardot business”.

“We acknowledge the potential impact that these changes may have on our team members and remain committed to open and timely communication with our stakeholders as KPMG undertakes its assessment,” he added.

AUSSIE RETAIL IN TROUBLE

Bardot is just one of many Australian retailers to have run into trouble in 2019.

Just last week, it was revealed iconic Italian chain Criniti’s fell victim to the weak economy and crippled consumer spending after announcing the group had entered into voluntary administration.

In 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 a stocktake. Administrators were appointed, and scores of stores have since collapsed. Five stores have now closed, leaving some workers without a job.

Footwear trailblazer Shoes of Prey also met its demise this 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.

Last month, 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.

Just weeks ago it was revealed that popular furniture and homewares company Zanui had collapsed after it abruptly entered voluntary administration, leaving some angry customers in the lurch.

And Muscle Coach, a leading fitness company, has also been put into voluntary administration this month after a director received a devastating diagnosis and the company racked up debts of almost $1 million.