Shock move as Aussie fashion brand collapses

The retail chain suddenly collapsed and now liquidators have revealed what’s next for the embattled chain.

A major Australian fashion chain has had 51 stores shut down immediately after it was ordered into liquidation by the Federal Court.

Ally Fashion is an Australian-owned fast fashion retailer that was founded in 2001, which described itself as “dedicated to creating contemporary ready-to-wear pieces for every woman”.

As a result of the store closures, 250 staff members have also lost their jobs.

The fast fashion chain had 160 stores across Australia and an online store before its collapse.

News.com.au broke the news of its demise and that the Federal Court of Australia had appointed Jeff Marsden and Duncan Clubb of BDO Australia as liquidators on 28 February.

Ally Fashion was ordered into liquidation over unpaid rent. Picture: Instagram

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The company was forced into liquidation after an application by a landlord for outstanding rent.

Following an urgent assessment of the business by the liquidators, they ceased operating

51 retail stores to improve the financial viability of the company, BDO Australia said in a statement.

These included 11 stores in NSW, 19 in Queensland, seven in South Australia, eight in Victoria and six in Western Australia.

Around Australia, 51 Ally Fashion stores have been immediately shuttered. Picture: Supplied

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BDO Australia also entered into a licence agreement with a related entity of the director, David Dai, to continue to operate the remaining stores.

Mr Marsden said Ally Fashion is a well-known Australian brand with a dedicated

team.

“The closure of underperforming stores and entering into a licence agreement will allow the business to continue operating in the short term whilst we urgently explore options to restructure, recapitalise or sell the business,” he said.

The company had boasted on LinkedIn about it’s success prior to its collapse.

“With over 50 new styles arriving per week, Ally Fashion is well in demand and the destination for women who can transcend the fashion’s boundaries – defying the trends and creating her own,” it said.

Liquidators are investigating a number of options for the brand. Picture: Instagram

It comes at a time when the Australian fashion industry has taken an absolute battering with a number of high profile retailers collapsing amid the cost of living crisis.

Mosaic Brands, which boasted iconic brands like Autograph, Noni B, Katies, Millers and Rivers, fell into liquidation and could not find a buyer with hundreds of stores closed as a result.

It also included Australian luxury fashion brand Harrolds which went under after nearly 40 years of operation and, while prestige Australian fashion brand Dion Lion also failed, despite dressing the likes of A-list celebrities like Taylor Swift and Dua Lipa.

Queensland University of Technology Business School retail expert Professor Gary Mortimer told news.com.au that it was evident discretionary spending by Aussies had been reduced as a result of the cost of living crisis and worryingly thousands of retail jobs had been lost.

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Originally published as Shock move as Aussie fashion brand collapses