Jeanswest to Shut Down All Stores, Over 600 Jobs Lost
An Australian clothing company called Jeanswest has gone into voluntary administration for the second time since 2020. This means that 90 stores are expected to close, affecting about 600 employees. Harbour Guidance Pty Ltd, the parent company of the company, has hired Lindsay Bainbridge, Andrew Yeo, and David Vasudevan as managers from Pitcher Partners to oversee the restructuring process.
Despite attempts over the last five years to revitalise the 53-year-old business, tough market conditions have made brick-and-mortar shop operations unsustainable. Lindsay Bainbridge, the administrator, said: “The owners have done everything they can to keep Jeanswest going, but market conditions mean sustaining bricks-and-mortar stores is not viable and unlikely to improve.”
In reaction to the shop closures, all remaining inventory will be sold both in-store and online to maximise returns for creditors. The administrators are also looking at the potential of retaining the brand’s web presence in order to keep activities running.
This follows a series of unfortunate news for Australia’s retail sector, such as the recent collapse of Mosaic Brands, which had owned stores such as Rivers, Noni B, and Katies and resulted in mass job loss.
Ever since it began operation in Perth back in 1972, Jeanswest has expanded into having retail shops all over New Zealand and Australia and established itself as a top teenwear company. Previous to that, the firm operated until it collapsed in January of 2020 before Harbour Guidance Pty Ltd later acquired it.
Managers are intent on working closely with employees who will be impacted by the change to provide direction and assistance throughout the transition period.
