Jeanswest enters administration: What happens now?
Jeanswest is the latest retailer to enter voluntary administration, citing "tough market conditions" as the reason behind the collapse.
With the online shopping market continuing to boom, brick and mortar retailers seem to be paying the price. Following a slate of other stores entering voluntary administration over the past 12 months, denim retailer Jeanswest has now also found itself on the chopping block.
It was revealed yesterday afternoon that KPMG has been appointed as the administrators of all Australian operations. In a statement, the organisation announced that Jeanswest stores will continue to operate as usual while it considers "all options for the restructure or sale" of the business.
Jeanswest currently operates 146 stores across Australia and employs 988 people, making the announcement a major concern for employees. However, James Steward from KPMG has called the change an "opportunity for Jeanswest to restructure so as to better respond to the challenging Australian retail market".
In a release, Steward said, "Like many other retailers, the business has been challenged by current tough market conditions and pressure from online competition."
"The administrators will be looking at all options for the restructure or sale of this established Australian retail business and are seeking urgent expressions of interest from parties interested in acquiring or investing in the business."
It is understood that Jeanswest's operations outside of Australia will not be impacted by the changes to administration.
The news follows the collapse of major Australian retailer Harris Scarfe just before Christmas. The affordable homewares and appliance store is now in receivership and is being looked into by the Fair Work Commission for failing to consult with the union prior to making the announcement.
Popular fashion retailer Bardot has also recently found itself in hot water, announcing just weeks ago that it will shut the vast majority of its stores over the next two months. 530 workers are set to lose their jobs.
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Main image: Twitter user @jeanswest