Australian fashion retailer Jeans West is set to shut 90 stores and put 600 jobs at risk after owners Harbour Guidance appointed administrators.
With a history dating back to 1972, the brand has been well-recognised for over half a century, but the name may disappear from the market as mid-tier fashion brands face mounting pressure from rising costs, declining consumer spending, and growing competition from online fast fashion.
Lindsay Bainbridge, Andrew Yeo, and David Vasudevan of Pitcher Partners Melbourne have taken over the business and say all restructuring options remain on the table.
While Bainbridge confirmed that the brand and online store will continue to trade, he gave no timeline for the store closures.
“The owners have done everything they can to keep Jeanswest going, but market conditions mean sustaining brick-and-mortar stores is not viable and unlikely to improve,” he said.
Jeans West has struggled for some time. Harbour Guidance, a Hong Kong-based company bought the brand out of administration in 2020.
Administrators in 2020 said Jeanswest owed creditors up to $50 million, including $2.6 million to employees.
At the time, it had 146 stores and employed nearly 1,000 people. In an attempt to survive, it closed 37 stores and made 263 staff redundant.
Tough Trading Conditions Unlikely to Improve
Retail conditions have worsened in recent years, with inflation and cost-of-living pressures leaving Australians with less disposable income.Bainbridge said the owners had cited “increasingly tough” trading conditions for Australian retailers caused by reduced discretionary spending and the increasing cost of living.
“They deeply regret the impact of store closures on their team members and their customers, and we will be working now with teams across the country,” Bainbridge said.
“This is a hard day for hundreds of Jeanswest team members, and we will be working directly with them to provide clarity and information about the next steps.”
Jeans West’s collapse follows the recent demise of Mosaic Brands, which includes Rivers, Noni B, and Millers.
The shutdown led to the closure of almost 700 stores and the loss of 2,800 jobs, with creditors owed more than $318 million.
What’s Next?
Administrators have confirmed that Jeans West stores will remain open temporarily while stock is cleared.“We will be opening the doors of all stores and selling online to clear all stock to secure a return to creditors,” Bainbridge said.
Stores will continue to honour all gift cards and loyalty points. Jeans West stores in New Zealand will not be affected.
A creditors’ meeting is set for April 4, where the fate of Jeans West and any potential rescue plans will be discussed.