Jeanswest to close 37 stores as sale campaign begins
24 January 2020, Written by Business News Australia
The latest Australian retailer to fall into voluntary administration, Jeanswest, will close 37 stores as a campaign to sell the business commences.
The total of 37 stores represents one quarter of the group's 146 total stores, with 263 employees to be made redundant as part of the retailer's restructure.
21 of the 263 redundant staff come from the retailer's head office, with the remainder those that staff the 37 stores due for closure. However, the administrators have not ruled out the potential redeployment of the redundant staff members in other areas of the business.
KMPG voluntary administrator James Stewart says the decision to close the 37 stores was not an easy one to make.
"The decision to proactively restructure the business early in the administration process has not been taken lightly," says Stewart.
"We are very mindful of the serious impact store closures and staff redundancies have on people's lives. However, we must also work to maximize the opportunity for this business to be sold or restructured to give it the best chance to continue."
A formal expressions of interest campaign for the sale of Jeanswest has commenced, with interested parties required to submit their EOI by 31 January 2020.
The voluntary administration of Jeanswest follows in the footsteps of two other major names in Australian retail.
In late November women's fashion retailer Bardot appointed KPMG to manage its voluntary administration.
Bardot announced in early January that it will close 56 stores across the country in order to remain in business resulting in more than 500 employees losing their jobs.
Department store chain Harris Scarfe similarly fell into receivership in December despite its strong customer satisfaction track record and annual sales of $380 million.
The company announced in early January that it would close 21 stores this month, meaning around 88-full time, 128-part time, and 224 casual positions would be impacted.
The Jeanswest stores that will close are:
Author: Business News Australia