Jeanswest is rescued and 680 employees keep their jobs after the company bought the iconic brand at the eleventh hour
- 680 Jeanswest employees will keep their jobs after it was rescued from closure
- The brand went into administration in January but has now been purchased
- At least 37 Australian stores will still close, costing 263 employees their jobs
- Move comes after more than a dozen iconic brands have collapsed in recent years
Approximately 680 employees of Jeanswest will keep their jobs after the iconic brand of the closure was saved.
The company went into voluntary administration last month after falling victim to the retail recession that has destroyed more than a dozen Australian brands in the last three years.
But on Tuesday, KPMG managers confirmed that they had found a buyer in Harbor Guidance Pty Ltd, an Australian partner company of Harbor Guide Ltd.
The sale should be completed by mid-March.
Approximately 680 employees of Jeanswest will keep their jobs after the iconic brand of the closure was saved
Approximately 106 stores will be retained for sale and the new owners hope to breathe new life into the company, known for its denim and maternity lines.
All 680 employees are expected to keep their jobs on sale.
The acquisition will not save the 37 stores that have already been marked to close.
It is expected that all 263 employees in those stores will be fired.
“This is a great result for all parties,” said KPMG restructuring partner James Stewart on Tuesday.
The brand is best known for its denim line (model shown in denim dress) and maternity wear
“Retail is a people company and the managers greatly appreciate the resilience of the Jeanswest staff during the management process.”
George Yeung, the director of Harbor Guidance, said his company hoped to give the brand a new lease of life.
“The acquisition of Jeanswest activities offers the opportunity to rejuvenate this iconic brand that the Australian community knows well,” he said.
“We are committed to continuing to serve the Australian communities and grow the Jeanswest brand organically.”
Jeanswest stores that are still closed during the sale include: Castle Towers, Macarthur, Miranda, Burleigh, Maroochydore, Karrinyup, Mandurah, Docklands and Eastland.
Although Jeanswest has been saved, a growing list of Australian companies has collapsed due to reduced customer spending in the store.
The new owner hopes to breathe new life into the brand to attract both new and old customers
RETAIL APOCALYPSE VICTIMS OF AUSTRALIA
2016: Dick Smith, Masters hardware, Payless Shoes
2017: Topshop Australia
2018: Avon, Espirit, Toys ‘R’ Us, Max Brenner, Roger David
2019: Ed Harry, Diana Ferrari, Napoleon Perdis, Ziera, Bardot, Harris Scarfe, Crinitis
2020: Jeanswest, Colette Hayman, EB Games, Co-op Bookstore, Ishka
Harris Scarfe, Bardot and Colette Hayman recently announced that they would be forced to close.
The iconic Australian car brand Holden also closes its store and stops the production and import of cars after the first opening in 1856.
Restaurant chains have not been immune either.
In 2018, most Max Brenner stores were forced to go bankrupt, while the end of 2019 also meant the end of Crinitis stores throughout the country.
Another notable administration was the Napoleon Perdis makeup line.
But the beauty brand was later saved by a creditor, similar to the current Jeanswest deal.
Although Jeanswest has been saved, a growing list of Australian companies has collapsed due to reduced customer spending in the store