Plea for gov’t help as soaring crime, rents, wages and energy bills send retail businesses broke
Surging crime and trade wars are adding to the pressures faced by retailers, with a peak body now pleading for more government support as “the hits keep coming” to business. Here are some of the Aussie brands we’ve loved but recently lost.
Victoria
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Surging shop crime and global trade wars are adding to the pain being experienced by Victoria’s struggling retail sector, with the industry’s peak body now pleading for “stronger and more immediate government support” to help businesses survive.
In the wake of the recent collapse of beloved brand names including Rivers, Katies and Noni B under Mosaic Brands, Ally Fashion, Jeanswest and Wittner — resulting in the loss of thousands of jobs — Australian Retailers Association (ARA) chief Chris Rodwell said the sector had “seen some significant casualties as the hits keep coming”.
“What retailers across the country have been contending with is a huge spike in operating costs across areas like rent, wages, energy and insurance — combined with slowed consumer spending,” he said.
“Add to this the impacts of an intense retail crime wave which has been particularly acute in Victoria.”
Mr Rodwell said the losses caused by retail crime added further operational and emotional burdens on businesses and their staff — and the number of stores being targeted by criminals in Melbourne had recently soared.
Some once popular retail locations had also battled changing shopping habits, with areas like Melbourne’s CBD slow to recover foot traffic after Covid lockdowns.
“The cumulative effect of these pressures is deeply felt across the sector,” he said.
The Herald Sun this week revealed Melbourne businesses targeted by criminals were increasingly turning to fog security products screens to fortify their stores amid a surge in robberies.
Gangs of armed robbers have been met with the blast of fog which is deployed from the roof, filling the room instantly to blind would-be crooks.
Smokeshield chief executive Natalie Vogel said the number of fog installations in Victorian stores had doubled.
The number of traffic bollards placed in front of stores also appears to have risen, in a bid to prevent vehicles entering and exiting retail premises.
Late last month four men were charged with carrying out a string of ram raids at designer stores across Melbourne, in which more than $1m worth of luxury items were stolen.
The alleged smash and grabs happened in the CBD over March and April, with police alleging designer gear worth about $1.2m was stolen.
High-end fashion brands including Louis Vuitton, Fendi, Burberry and Dior were among the alleged targets, along with major retailer David Jones.
It is alleged an Essendon store was also hit.
Mr Rodwell said “volatility resulting from the current trade wars” and “ultra low-cost global competitors” were also hurting Aussie retail brands.
With the retail sector employing one in every ten Australians and contributing $430bn to the Australian economy — accounting for almost one-fifth of the nation’s Gross Domestic Product — store closures represented “thousands of livelihoods, families and local communities”, Mr Rodwell said.
The ARA and National Retail Association were now calling for “urgent action” from the government to help the struggling sector, he said.
This should include fewer “layers of regulation” and policy changes to support retailers.
“Without urgent action, we risk losing more of the much loved brands Australians know, along with the vital jobs and community connections they provide,” Mr Rodwell said.
“We are seeking policy changes that give retail license to grow. We will remain laser focused on seeing productivity improve by cutting red tape and applying downward pressure to business costs like energy, leasing, insurance and compliance. We’re also seeking continued collaboration on solutions for retail crime and supply chain resilience.”
LOVED BRANDS GONE BUST
Major Aussie brands have recently succumbed to the pressures facing the retail sector, resulting in the loss of scores of jobs and in some cases leaving creditors facing huge losses.
Mosaic Brands
Piles of debt and no future certainty were the fatal blows for a stable of well-known Australian clothing brands as their parent company officially went bust.
Retail giant Mosaic Brands – owner of Millers, Rivers, Crossroads, Katies, Noni B and Autograph – collapsed into voluntary administration in October 2024.
In a notice to creditors delivered in February this year, Mosaic’s total debt appeared to have been finally tallied at more than $318m.
Ally Fashion
Australia’s retail industry was hit by another blow in February this year with major chain Ally Fashion collapsing and up to 185 stores and hundreds of staff across the country affected.
The retailer was ordered to be wound up by the Federal Court of Australia due to insolvency.
Ally Fashion is an Australian-owned retailer that was launched in 2001, “dedicated to creating contemporary ready-to-wear pieces for every woman”.
Wittner
Popular Australian footwear brand Wittner — which was founded more than a century ago — collapsed into administration in April this year.
Deloitte insolvency experts Sal Algeri and David Orr were appointed joint administrators to three businesses that trade under the Wittner brand – Wittner Group Holdings, Wittner Retail Australia and Wittner Retail New Zealand.
Mr Algeri said the iconic women’s shoe company, which has its head office in Melbourne, would continue to trade as an urgent sale and/or recapitalisation of the business was undertaken.
Wittner has more than 20 branded stores in Australia and New Zealand, over 25 concession stores across David Jones and Myer, and a multi-store e-commerce platform that trades across its own branded website, Myer, David Jones and The Iconic.
It’s understood Wittner previously put itself up for sale in mid July 2023, amid a flurry of businesses hitting the market.
Jeanswest
In late March this year it was revealed the parent company of Australian born fashion icon Jeanswest had called in the administrators as a plan was developed a plan to shut down retail stores, just a few years after buying the brand.
Jeanswest entered voluntary administration for the second time since 2020, with the business unable to keep its physical stores open.
The shutting down of the physical retail chain will affect 600 employees across 90 stores. The business will still operate online.
In April it was revealed brand’s collapse had left creditors facing huge losses of more than $48m.
Originally published as Plea for gov’t help as soaring crime, rents, wages and energy bills send retail businesses broke
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