Metalicus is the latest retailer to fall into administration
The womenswear retailer owned by General Pants has officially announced that it's going into voluntary administration.
Over the past year there have been a number of Australian retailers whose financial dilemmas have led them into voluntary administration, and the latest retailer to fall victim is the General Pants owned fashion brand Metalicus.
Despite only releasing the label at General Pants in March, plans are already in motion to liquidate the remaining stock at the 12 retail stores, 15 Myer concessions and online Metalicus store – moving quickly since filing documents with the Australian Investment and Securities Commission (ASIC).
So what caused the company to get to this point? According to Petr Vrsecky, the business appointed administrator from General Pants, the problem was straightforward (as reported by Inside Retail).
“It's early stages so there’s still some investigating to do… but fundamentally it’s a classic retail story where wages and rents were far too high for sales,” he said.
In a farewell to fans, Metalicus sent out an email saying, “Metalicus has long been recognised as an iconic Australian fashion brand and we would like to take this opportunity to thank our customers for their ongoing loyalty and support over the years."
Since then, the Metalicus Facebook page has been shut down and the Instagram is no longer updating with new content, and given that social media is often one of the more contemporary indicators of a company's success, it speaks volumes to the direction that Metalicus is now headed.
Looking to the future, anyone interested in purchasing Metalicus products can expect significant savings on all stock as the liquidation process begins. Having seen companies like Oroton and SurfStitch go into voluntary administration in the last year, we're hoping that the Australian market isn't on the verge of more closures.
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