How Karen Millen entering administration will affect Australian customers
The UK fashion label is the latest to announce store closures, with seven shops set to shut across Australia.
With continual news reports declaring the sliding state of the Australian retail market, it's hardly surprising that more stores are entering into administration. This time, it's London-based international fashion house Karen Millen that has taken a blow, with the company announcing that its Australian arm is about to shut.
The store closures come after the business fell into administration in Britain last month. Administrators from Deloitte have now been called in to take control of the Australian side of the business and begin shutting down stores across Sydney, Melbourne, Adelaide, Brisbane and Perth.
The label currently operates seven independent stores across Australia, along with eight concessions in David Jones and Myer. The wind-down will take place in the coming weeks, with an up to 75% off closing down sale already appearing on . Any customers currently holding gift cards or loyalty cards will have their benefits honoured.
The Australian stores currently employ around 80 staff members, most of whom operate on casual employment and will be affected by the closures. The job losses follow those in the UK, where head office staff have already been made redundant and many more jobs have been put at risk.
Karen Millen was previously bought out by online retailer boohoo, a move which left many scratching their heads. Where Karen Millen is known as a high-fashion retailer, boohoo specialises in cheap fast fashion, making the move to buy it an odd choice. It is currently unknown whether boohoo will launch Karen Millen online in the future.
The demise of the brand's Australian presence sees the company join plenty of other big-name closures in recent years. High-street UK chain already announced it was entering into administration earlier this year, while both Dick Smith and Toys "R" Us have entered voluntary administration in recent years.
The Australian branches of Topshop, Payless Shoes, Marcs, Roger David, David Lawrence and Napolean Perdis have also been affected by the struggling shopping market.
Main image: Facebook user Karen Millen