Jeanswest administration: Gone every 3 seconds! Rush for $20m of collapsed retailer’s stock
Jeanswest is selling a pair of jeans every three minutes as administrators race to clear $20 million worth of stock before they close down the collapsed retailer’s network of more than 90 stores across Australia.
The shopping mall stalwart last month become the latest victim of a pullback in discretionary spending amid a cost-of-living crunch that is hurting traditional bricks and mortar retailers.
It has left more than 600 staff in limbo as administrators Lindsay Bainbridge, Andrew Yeo and David Vasudevan from Pitcher Partners work on a rescue plan that will see Jeanswest shift to online-only sales.
The trio was called into parent company Harbour Guidance Pty Ltd on March 26 — a little over five years after Jeanswest was rescued from complete collapse in 2020.
In an update released on Wednesday, Mr Bainbridge said there had been “a huge outpouring of goodwill and interest” in the stock clearance sale, with 53,000 pairs of jeans sold in just two weeks.
In all, 160,000 items of clothing had been sold, with 184,000 customers coming into stores and more than half a million visiting the website.
Global asset advisers Gordon Brothers have been appointed to support the sale and said further shipments of stock were expected to reach stores shortly.
Mr Bainbridge said the response from shoppers for Jeanswest’s mid-market men’s and women’s fashion staples had been remarkable.
“We’ve seen huge spikes in foot traffic and online sales, which has been the best possible result as we get the business ready to be restructured as an online operation,” he said.
Harbour Guidance Pty Ltd is owned by Hong Kong clothing and textiles tycoon Chun Fan Yeung and his family, which had a minority stake in Howsea Ltd — the previous parent company of Jeanswest.
Mr Yeung helped pulled Jeanswest back from the brink after the brand entered administration in early 2020 but has since found it difficult to revive sales as trading conditions for Australian retailers become increasingly tough and bricks and mortar stores compete with the growing power of online labels, particular fast-fashion platforms such as Temu.
Mr Bainbridge last month said market conditions meant sustaining bricks-and-mortar stores was not viable and unlikely to improve.
“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.”
Jeanswest was founded by high-flying entrepreneur Alister Norwood, who opened the first store in Perth’s Barrack Street in 1972.
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