Colette by Colette Hayman enters administration

Colette by Colette Hayman is the latest Australian retail chain to hit the skids.

Fashion chain founder Colette Hayman at her company’s head office in Sydney. Picture: Troy Snook.

The voluntary administrator overseeing collapsed fashion and accessories chain Colette by Colette Hayman is hopeful the strong brand recognition of the brand will help lure a buyer for the distressed group, although he conceded some of the retailer’s 140 stores across Australia and New Zealand will possibly close.

Deloitte Restructuring Services partner Vaughan Strawbridge said Colette by Colette Hayman, which employs over 300 permanent staff, plus casuals — and has annual sales of more than $140m — was left stranded for capital following the Christmas sales leaving its directors no choice but to place it into voluntary administration.

“Obviously it has gone through the Christmas trading period and the business was in a position where it needed to repay some of its capital facility, which was predetermined and pre agreed, and I guess access to capital funding ultimately wasn’t forthcoming when they expected it to be and that put directors in that tough position,’’ Mr Strawbridge told The Australian on Tuesday.

The current malaise gripping the $320bn Australian retail sector has claimed its latest victim with the collapse of bags, jewellery and accessories business Colette by Colette Hayman, a business founded in 2010 and which only three years ago sold a 49 per cent stake in to the private equity arm of IFM Investors.

There has been a string of recent retail failures including Jeanswest, Harris Scarfe, Laura Ashley and Co-op Bookshop’s Curious Planet retail chain, with growing fears more retailers will collapse following the wash-up of what might have been a tough Christmas and New Year trading environment.

Mr Strawbridge said Colette by Colette Hayman had failed leaving around 150 unsecured creditors owed roughly $10m.

But he remained hopeful a buyer could be found.

“Colette By Colette Hayman has, unfortunately, been impacted by the current weak retail environment, as have many others.

“There is definitely a strong brand recognition which will definitely help as we run through this process.’’

At its peak the chain had around 180 stores, including sites in Britain and South Africa, but that had been steadily reduced to 140 with 126 stores in Australia and 14 in New Zealand.

Mr Strawbridge said potentially there could be some store closures.

“I think potentially, we are looking at that at the moment ... We just need to work through that and the financial impact.

“Our focus is on continuing to trade the business while we seek either a recapitalisation of the group or a sale of the business.

“Given the strength of the brand we are confident we will be able to secure a future for the business and preserve the employment of as many people as possible.”

Mr Strawbridge said that, as trading continues, employees will continue to be paid by the administrators. He said he was also confident there are sufficient assets to meet all employees entitlements. Gift cards will also honoured.