Alice McCall enters voluntary administration

Australian fashion label Alice McCall has fallen victim to the COVID-19 downturn and has entered voluntary admin­istration.

Designer Alice McCall, right, and actress Melanie Jarnson wearing dresses from the 20/21 Folklore collection. Picture: Jane Dempster

Fashion label Alice McCall has entered voluntary admin­istration.

The label, known for its rock-bohemian styles including ruffled minidresses and lace playsuits, put the blame in part at the economic downturn cause by COVID-19.

The label was launched by McCall 17 years ago and quickly gained a following among a young clientele.

In a statement, McCall said: “So it is with a heavy heart that due to the unprecedented effects that COVID-19 has had on our economy, as well as some unsustainable bricks-and-mortar rental obligations, I have had to make a necessary decision to edit down my business, with the objective of building a more sustainable business model for the future.”

Alice McCall’s label has entered voluntary administration.

McCall has 12 stores operating across Australia (two had not reopened after COVID shutdowns); four stores are expected to remain open in key locations in Sydney, Melbourne and Brisbane.

Ian Purchas and Jason Porter, of SVP Partners, have been ­appointed as voluntary administrators of the company.

Mr Purchas acknowledged the difficulties faced by the retail industry and fashion in particular due to COVID, which he said had “severely” affected the company’s revenues. But he added that “in this case the company hasn’t traded profitably for a couple of years”.

“I think she’s (appointed administration) at a time where the business is still strong enough and the brand has such a strong reputation that it can continue to trade,” Mr Purchas said.

Along with the store closures, there will also be a number of redundancies.

In September, the designer launched an e-commerce site for China, where she had a strong clientele, following the downturn in Chinese tourists to Australia in the aftermath of the summer bushfires and pandemic.

McCall has been an independent company since it launched.

A model in the Alice McCall show at Australian Fashion Week 2019. Picture: Getty Images

Mr Purchas said while there had “been discussion” about taking on investment, that was a decision to be made “after the process to see what the strength of the business will be after administration”. He said: “The objective of this (administration) is to keep the business trading, just in a different model with more emphasis online.”

Added McCall: “I pride myself on being ethical, honest and transparent in business, and ­because of this I have had on ­majority a fantastic long-lasting committed team, this is a doctrine I live by. And through this process of change in my business, this I believe will only get stronger.”

The administration period will run for five weeks.

“We’re not done,” said Mr Purchas. “She is determined to keep it going and I’m determined to try and help that happen.

“Based on what we know now that is very likely.”