Coronavirus the final hit for failed Colette by Colette Hayman fashion business
Colette by Colette Hayman to close all its remaining 93 stores affecting 210 staff.
In another blow to the already ravaged retail sector, the failed Colette by Colette Hayman business will close all its remaining 93 stores affecting 210 staff, with the decision triggered by the coronavirus pandemic.
In February, the administrators to the collapsed fashion apparel company announced the closure of 33 stores across Australia and New Zealand as part of the process of preparing a 105-store business for sale.
But due to the health crisis the administrators from Deloitte on Thursday advised staff that trading at all stores would cease from close of business, 26 March 2020, and until further notice.
Administrator Vaughan Strawbridge said: “Until today, we have been able to effectively manage shopfront operations in what is a rapidly changing public health and trading environment.
“But the reality is that COVID-19 presents a health risk in a retail environment, and without being able to guarantee a safe environment for store employees, and with their health a priority, we have had to make this decision to cease trading across the 93 store network in Australia.”
The closures will affect approximately 210 permanent staff, plus casuals. Stores in New Zealand have already closed as a result of government directives.
“These are extraordinary times, and there is also no certainty that many retail operators in Australia will be able to continue trading amidst so much uncertainty and with public health measures changing so frequently,” Mr Strawbridge said.
Employees are being stood down with access to certain leave entitlements and every support possible to ensure they can access relevant government support services.
Online sales and order deliveries are not affected.
“Until today, we had been able to trade the business, but due to the continued heightened risk to our staff we have had to make this unfortunate decision,” Mr Strawbridge said.
“We hope to re-open the bricks and mortar business when this unprecedented public health threat has passed, but when that will be, we cannot be certain at this time.”
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