Jeanswest to shut all stores, with 600 jobs on the line

Australian-founded, foreign-owned denim label Jeanswest is closing all its stores, with up to 600 jobs on the line.

Harbour Guidance, which rescued Jeanswest in 2020, has appointed Pitcher Partners as administrators, citing challenging trading conditions amid a cost-of-living crisis as the reason for shutting 90 stores.

The retailer is aiming to continue operating as an online store. Pitcher Partners’ Lindsay Bainbridge saying all store stock will be cleared through online sales.

“We will be opening the doors of all stores and selling online to clear all stock to secure a return to creditors,” he said.

Jeanswest is the latest clothing retailer to run into trouble as shoppers tighten their belts, joining Mosaic – owner of Millers, Rivers and Noni B brands – in calling in administrators.

Mosaic’s collapse led to the closure of almost 700 stores and the loss of 2800 jobs. The company owed its creditors more than $318 million.

All 90 Jeanswest stores across Australia will close.Credit: AAP

Jeanswest’s closest competitors in the market are Just Jeans and Jay Jays, which are owned by Myer.

Mid-tier clothing brands have been particularly vulnerable to changing consumer habits, with shoppers holding off on non-essential purchases and increasingly opting to buy items online from retailers like Shein.

According to Australia Post’s latest e-commerce report, Australians spent a record $69 billion on online shopping last year, an increase of 12 per cent on the year before, largely driven by platforms such as Amazon, Shein and Temu.

“Online marketplaces”, such as Amazon or eBay, accounted for nearly 40 per cent, or $16 billion, of online spending growth in 2024 as customers sought cheaper and more affordable alternatives, the report said.

Pitcher Partners’ Bainbridge said current economic conditions had made it impossible to keep the physical stores open.

“The owners have done everything they can to keep Jeanswest going, but market conditions mean sustaining bricks-and-mortar stores is not viable and unlikely to improve,” he said.

“They deeply regret the impact of store closures on their team members and their customers, and we will be working now with teams across the country.”

“This is a hard day for hundreds of Jeanswest team members, and we will be working directly with the team members to provide clarity and information about the next steps,” Bainbridge said.

Jeanswest survived a near-death experience in 2020, going into voluntary administration in January. It subsequently closed 37 stores and made 263 staff redundant before it was rescued by Harbour Guidance – the Australian subsidiary of Hong Kong-based company Harbour Guide – owned by clothing mogul Chun Fan Yeung.

Yeung’s family investment vehicle, Howsea, was the former parent company of Jeanswest, having bought the company from its previous owner, Glorious Sun Enterprises, in 2017 in a $41 million deal.

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