The company behind fashion brand Jeanswest has called in administrators, putting the future of hundreds of workers in limbo.
The company behind fashion brand Jeanswest has called in administrators, putting the future of hundreds of workers in limbo.
Harbour Guidance has decided to put Jeanswest in voluntary administration, appointing Lindsay Bainbridge, Andrew Yeo and David Vasudevan from Pitcher Partners Melbourne.
Jeanswest, established in Perth in 1972, has grown to operate from more than 90 locations across the country.
The brand employs more than 600 team members, according to Harbour Guidance’s statement released today.
Jeanswest entered administration but was bought out by Harbour Guidance in 2020.
Despite the lifeline, Harbour Guidance today announced that the bricks and mortar business operations were set to close in due course but the brand and online store might continue.
All restructuring options remain open, the statement reads.
Mr Bainbridge said the company had fought for five years to revive the 53-year-old brand but decided it was time to step back from physical stores and focus on online retail.
“The owners have done everything they can to keep Jeanswest going, but market conditions mean sustaining bricks-and-mortar stores is not viable and unlikely to improve,” he said.
“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.”
Mr Bainbridge said it was a hard day for hundreds of the Jeanswest team members, but the administrators would be working directly with them to provide clarity on the next steps.
All store stock is expected to go on immediate sale as the process of restructuring the business starts, according to Mr Bainbridge.
“We will be opening the doors of all stores and selling online to clear all stock to secure a return to creditors,” he said.
Jeanswest was founded by WA entrepreneur Alister Norwood as a denim clothing store before being acquired by Hong Kong-based Glorious Sun Enterprises in 1994.
Glorious Sun sold the Australian operations to Hong Kong-based Yeung Family Company in 2017.
Harbour Guidance Pty Ltd, the Australian subsidiary of Hong Kong company Harbour Guide Pty Ltd, owned by Chun Fan Yeung.
Business News previously reported that Mr Yeung's family company, Howsea Ltd, was the former parent of Jeanswest, having bought the retailer in 2017 for $41 million.
Mr Yeung was a former director of Jeanswest prior to its collapse in 2020.
