Karen Millen announces closing down sale after administrators appointed

Yet another retailer is leaving Australian shores, as administrators announce they will “progressively close all stores in the coming weeks”.

Fashion stalwart Karen Millen has become the latest victim of the ailing retail industry, announcing it will shortly close all Australian stores.

The British fashion retailer — which was founded in 1981 and specialises in tailoring, coats and eveningwear — was bought out of administration by internet retail giant Boohoo last month for £18 million ($A32,150,970).

#Boohoo has bought #KarenMillen pic.twitter.com/e6vCrsKrwm

— Nay Opie (@NayOpie) September 3, 2019

But today it was revealed that Deloitte partners Richard Hughes, Tim Norman and Michael Billingsley had been appointed administrators of Karen Millen Australia — the local arm of the UK women’s retail icon.

Deloitte Australia announced it was now conducting a “controlled wind down” of the label’s seven independent Australian stores along with eight concessions housed in department stores David Jones and Myer.

It means Karen Millen Australia — which turned over around $19 million in 2018 and employs around 80 Australians, many of whom are casuals — will soon depart Australian shores for good.

“With the UK business now sold and the label withdrawing from Australia, we expect to wind down the business here and progressively close all stores in the coming weeks,” administrator Tim Norman said in a statement.

“If quick, shoppers can expect some bargains with discounted stock being sold from stores and online until the end of this month.”

Karen Millen is closing down. Picture: Supplied

Stand-alone Karen Millen stores are currently located at DFO South Wharf, Emporium, Chadstone and Doncaster in Victoria, the QVB and Chatswood Chase in NSW and Burnside Village in South Australia.

There are also concession stores at David Jones in the Sydney and Melbourne CBDs and at Myer in the Sydney, Brisbane and Melbourne CBDs as well as in Bondi, Chadstone and Perth.

The brand’s website reveals a closing down sale is already underway, with up to 75 per cent off everything.

Another retailer bites the dust. 80 staff. “Karen Millen to wind down local stores..” https://t.co/khwiKJVjHc

— Joe Harvey (@SensibleSenta) September 4, 2019

Customers holding gift cards or who are members of loyalty programs will have their benefits honoured, but Deloitte advised affected Australians to refer to the Customer FAQ section of the Karen Millen website for further details.

Karen Millen is just the latest in a string of local and international retailers to face closure recently.

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

At the end of the month, the Napoleon Perdis beauty empire also revealed the cult make-up chain’s 56 Aussie stores had closed for stocktake, and Simon Cathro, Chris Cook and Ivan Glavas of Worrells Solvency Accountants had been appointed as administrators.

It followed a horror 2018 in which a slew of retailers exited the market.

Plus-size womenswear brand Maggie T became the first high-profile Australian retailer to enter administration in 2018 after announcing it would close in early January.

Not long after, Australian footwear, clothing and accessories label Diana Ferrari revealed “at least four” of its 17 retail stores would be rebranded with the rest to close and six clearance outlets to remain open.

Napoleon Perdis went into receivership at the start of the year. Picture: Richard Waugh/AAP Image

In the same month, outdoor adventure gear company Mountain Designs made the “difficult decision” to close one in three stores in 2018.

Shops at Joondalup, Wagga Wagga, Toowong and Dubbo closed on January 7 followed by branches at Cannington, Bendigo, Toowoomba and Wollongong on January 10, with others at Pacific Fair, Ashmore, Bunbury, Moorabbin and Warringah also shutting.

Next came Gap, which quietly bowed out of the Australian market in early February.

The US fashion giant was brought to Australia by luxury goods retailer Oroton — which narrowly avoided its own collapse late last year.

Soon after, cosmetics brand Avon announced it would depart from Australia and New Zealand “by the end of 2018”, leaving the company’s 220 staff and more than 21,400 representatives facing an uncertain future.

In early May, fashion retailer Esprit revealed it would close all 67 of its loss-making Australian and New Zealand stores as the Hong Kong-listed company shifted its focus to more profitable regions.

In January, Australian menswear retailer Ed Harry went into voluntary administration. Picture: Specialty Mens Apparel

Toy giant Toys ‘R’ Us finally closed down for good on August 5 after going into voluntary administration in May.

In July, administrators revealed all Toys ‘R’ Us and Babies ‘R’ Us stores across the country would fold, with around 700 jobs lost.

The announcement followed the failure of Toys ‘R’ Us in the US in March.

Other big names that folded last year include Shoes of Prey, Max Brenner, Roger David and Laura Ashley.

Which defunct retailer will you miss the most? Tell us at @carey_alexis | [e-mail]