Karen Millen Australia falls into administration
4 September 2019, Written by David Simmons
The Australian arm of the iconic UK fashion house Karen Millen has fallen into administration.
It comes just as its UK parent company went into administration in Britain, spelling the end for the Australian business at the time, and sold to online retailer Boohoo.
Deloitte has been appointed as the administrators of the UK company's Australian business.
The administrators are now winding down the company's seven independent stores in Australia in addition to the brand's eight concessions housed in David Jones and Myer.
The company turned over around $19 million last year and currently has around 80 employees.
Administrator Tim Norman says the winding up of the business is in direct response to the UK parent's fall into administration last month.
"With the UK business now sold and the label withdrawing from Australia, we expect to wind down the business here and progressively close all stores in the coming weeks," says Norman.
"If quick, shoppers can expect some bargains with discounted stock being sold from stores and online until the end of this month."
The seven stores are located in Victoria (DFO South Warf, Emporium, Chadstone, Doncaster), New South Wales (QVB, Chatswood Chase), and South Australia (Burnside Village).
The British brand was acquired by online fashion group Boohoo Group for £18.2 million in August soon after it went into administration.
Boohoo recently overtook ASOS as the most valuable online fashion retailer in the United Kingdom, with a market capitalisation of around £2.73 billion and generating revenues of £856.92 million in 2018.
No Karen Millen UK employees were taken on by Boohoo, with the standalone Karen Millen retail stores in the UK set to close too.
Karen Millen was founded in 1981 by Kevin Stanford and Karen Millen. The brand was acquired in 2004 by the Icelandic Mosaic Fashions. The brand then transferred to Aurora Fashions in 2009 when Icelandic Mosaic Fashions creased trading and was spun-out from Aurora in 2011 remaining under the ownership of Aurora's owner, Kaupthing Bank.
Business News Australia
Author: David Simmons