‘We went from doggy paddling to drowning’: Alice McCall’s fall and rise

Designer Alice McCall wipes away a tear when she recalls the moment she made the painful call last November to appoint administrators to her fashion label of 18 years.

“The idea of a voluntary administration for me was abstract and foreign and a no-go zone,” McCall says. “I got to a point where my business lawyer said there was no other way, and fundamentally it was to get out of 11 commercial leases that ... were dragging my business down. COVID hit and took doggy paddling to a state of drowning.”

Eyeing the future ... Alice McCall is clawing her way back from voluntary administration. Credit: Dominic Lorrimer

Over nearly two decades, McCall built her brand on a foundation of “celebration dressing” – party dresses in bold coloured laces, often with fringing or other embellishment – as well as statement rompers, knits and suiting, often with a nod to the ’60s, ‘70s or ’80s. Over the years her designs have been worn by celebrities including supermodel Kate Moss and actress Kristen Stewart.

In her first interview since the administration, McCall says she felt the need to set the record straight with her customers, and the wider Australian public about what went wrong.

“I heard the consumer is feeling a little confused, and I think it’s super important to just ... articulate where the brand’s at today,” she says.

She has trimmed down her business from a high of 15 stores to three, and is planning her “comeback” show at Afterpay Australian Fashion Week on May 31.

Alice McCall’s show at 2019 Mercedes-Benz Fashion Week Australia.Credit: Getty Images

Online now accounts for 63 per cent of sales, and with more than 500,000 Instagram followers, McCall says her brand is in a perfect position to take on a business partner, something she had never previously entertained.

“The whole thing’s been awfully hard,” she says. “I’ve downsized where I’m living, quite drastically ... But I am OK, I have a roof over my head and I am driven by what I do and I think it does have purpose.”

McCall takes full responsibility for the financial woes of her business, which she links directly to taking on retail leases at a rapid rate. “There wasn’t a lot of strategy behind that,” she says. “I opened stores aimlessly, the brand was hot and I know that has been the biggest detriment financially to cash flow, and then COVID.”

The Alice McCall store sign still hangs in front of where Alice McCall’s store once was on Oxford Street in Paddington.Credit: Kate Geraghty

While she has several close confidants in the industry, McCall says it was her mother, who previously ran a large direct-selling childrenswear business, who became her biggest support through her struggles.

“[Mum] went through a similar thing to me with voluntary administration,” McCall says. “She always warned me along the way that the bigger you grow, the further you can fall.

“I feel supported but, mainly, it’s a really solitary journey. I got to the stage where I was informed by my lawyers the path I had to go down ... I did the right thing [for my business] ... In hindsight, if I’d had the business partner ... I’ve become a lot wiser than I was four or five years ago.”

Despite the pandemic hardships experienced across the industry, she says sales online didn’t suffer as much as she feared, despite people’s calendars being virtually emptied overnight.

Alice McCall and model Frankie wearing Alice McCall Resort 21.Credit: Dominic Lorrimer

“People weren’t going to events as much but it’s important to stick to the DNA of the brand, she says. “I had a quick go at leisurewear and it’s nonsensical [for me]. The market is over-saturated and it’s just not what I do. What we found is women are still investing in occasion wear, it might be for an event in three months or a multi-use [garment].”

She says she feels vulnerable about returning to fashion week, where two years ago her show was a cascade of glitter and fringing made for the party season, and, many said at the time, her growing business in China. To offset the cost of staging a show, which can be anywhere from $20,00 to 10 times that, she is selling half the seats at the event to consumers.

“I feel raw and I feel vulnerable and excited and remembering the purpose of creating the clothes and doing what I do,” she says. “It really is about connecting with the customer, and that makes it make sense.”

This year marks the first time organiser IMG is opening the once industry-only event to consumers, a move that is in line with fashion weeks around the world. Every evening, a consumer-facing show, by brands including Romance Was Born and KITX, will include at least 25 per cent of seats for purchase by the public, for about $150.

Afterpay Australian Fashion Week is on May 31-June 4. australianfashionweek.com

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