Jeanswest staff and stores slashed as administrators prime business for sale

Jeanswest cuts one quarter of its Australian workforce and a large component of its 146 stores across Australia.

The failure of Jeanswest threatens almost 1000 jobs, with this announcement by the administrators being just the first tranche of redundancies.

The failed retailer Jeanswest has begun its restructure under the guidance of its voluntary administrators, with KPMG announcing on Thursday that 37 stores would be closed and 263 employees made redundant.

The job losses amount to one quarter of its Australian workforce and a large component of its 146 stores across Australia. The total so far includes 21 staff from the company’s head office in Melbourne.

KPMG voluntary administrators Peter Gothard and James Stewart confirmed on Wednesday they had commenced the restructure of the Jeanswest business as the sale of business campaign for the Australian operations of clothing retailer, Jeanswest Corporation progresses.

Mr Stewart said the decision to restructure the business was a difficult but necessary one taken in order to provide the business with the best possible chance of attracting a new owner.

“The decision to proactively restructure the business early in the administration process has not been taken lightly,” said Mr Stewart. “We are very mindful of the serious impact store closures and staff redundancies have on people’s lives. However, we must also work to maximise the opportunity for this business to be sold or restructured - to give it the best chance to continue.”

WHERE THE STORES ARE CLOSING

Mr Stewart said that, where possible, the administrators would look to redeploy team members. Support is also to be provided through Jeanswest’s Employee Assistance Program to those employees impacted by the store closures.

Jeanswest, the iconic Australian retail brand which opened its first store in Perth in 1972, lurched into voluntary administration last week after years of underperformance and a recent management buyout that saw the Australian arm of Jeanswest bought from its Hong Kong-based owner. The denim chain, owned by the Yeung family, had encountered problems like those other Australian retailers had seen.

The failure of Jeanswest threatens almost 1000 jobs, with this announcement by the administrators being just the first tranche of redundancies.

In 2017, the then Hong Kong-based owner of Jeans­west warned that Australians were more interested in splurging their disposable income on “lifestyle spending’’, such as travelling or a new plasma television, instead of buying a new pair of jeans, resulting in a “lethargic” and “slothful” retail environment where only discounting would shift stock.