The retail slowdown has claimed yet another scalp, with the nationwide women’s clothing chain Brown Sugar being placed in the hands of administrators.
Deloitte Corporate Reorganisation Group partners Sal Algeri and Tim Norman have been appointed as joint voluntary administrators over the chain, which has 40 stores nationwide, including eight in WA.
A creditors meeting will be held on August 12.
“Our first priority is to try and achieve the best possible outcome for all stakeholders – employees, creditors and customers,” Mr Algeri said.
“All Brown Sugar stores will commence a stock clearance sale shortly while the Voluntary Administrators assess the company’s financial position and seek expressions of interest to purchase the retailer.
“The Brown Sugar brand has suffered as a result of successive management changes since 2009 and, despite the current management team working to restore the company’s trading position, adverse trading conditions and falling consumer sentiment have continued to hamper the company’s return to profitable trade.”
Mr Algeri said that while the company continued to trade, all ongoing employees’ salaries and benefits would be honoured.
The collapse of Brown Sugar is the latest in a series of high profile stumbles in the retail sector this year.
Clothing and lifestyle store Colarado was shut down in June, men’s clothing chain Ed Harry was closed in May and book retailers Angus and Robertson and Borders bit the bullet in March.
Five of homewares retailer House’s shops in Western Australia have also shut their doors this year.
