07/06/2019 - 14:53

Transit Clothing to close its doors

07/06/2019 - 14:53

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The administrators of Perth-based Transit Clothing have announced that the business will close and cease trading at all remaining store locations within the coming week.

The remaining stores at Joondalup, Carousel and Cockburn will most likely close in the coming week. Photo: Lakeside Joondalup

The administrators of Perth-based Transit Clothing have announced that the business will close and cease trading at all remaining store locations within the coming week.

FTI Consulting’s Daniel Woodhouse and Ian Francis were previously appointed as voluntary administrators of the business in May.

Transit Clothing was founded in Perth in 2004 in Karrinyup and grew to 18 stores at its height in 2011, all located in Western Australia.

The remaining stores at Joondalup, Carousel and Cockburn will most likely close in the coming week, according to a statement from FTI.

FTI Consulting managing director Daniel Woodhouse said while Transit Clothing had enjoyed a short burst of improved sales at the time of entering administration, continued trading performance could not justify stores remaining open.

“Without a buyer coming forward for the business, or a real marked transformation in trading conditions, we are now at a stage where an orderly wind down of the Transit Clothing business makes the most sense,” he said.

“Transit Clothing has been a well-known brand in WA over a number of years, but what we have seen is a repeat of a common retail scenario where a successful brand is impacted by declining sales revenue coming down against fixed and stubbornly high overhead costs, like leases. 

“Unfortunately, even for successful retailers, eventually the balance sheet can no longer bear this strain.”

Approximately 45 staff were employed at the time of entering administration across nine stores.

FTI said all staff payroll was up to date, and all staff would have entitlements covered by remaining assets of the business, or the Commonwealth Fair Entitlements Guarantee.

Ahead of the closure of its remaining stores, the administrators said they instructed stores to clear remaining stock, with significant discounts of up to 80 per cent off apparel and 50 per cent off footwear being offered to customers. 

 

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