Another Retail Victim: Jeanswest To Shut Shops, Shed Jobs
National fashion retailer chain Jeanswest will shut almost 40 stores across the country, increasing the retail store closure figures to over 200 in the first month of 2020.
KPMG administrators James Stewart and Peter Gothard revealed the company’s restructure would see 37 stores close and 263 staff made redundant – including 21 head corporate employees.
It comes after Jeanswest collapsed into administration last week with administrators putting blame on a long period of unsatisfactory trading and increased rental costs.
But there are still hopes a suitable buyer will emerge for the embattled business, which had 146 stores across the nation and was founded in 1972, responsible for the employment of nearly 1,000 staff.
Stewart said the store closures were disappointing but necessary if the brand was to find a potential buyer.
‘The decision to proactively restructure the business early in the administration process has not been taken lightly. We are very mindful of the serious impact store closures and staff redundancies have on people’s lives,’ he told The Sydney Morning Herald.
‘However, we must also work to maximise the opportunity for this business to be sold or restructured – to give it the best chance to continue.’
The revelation has left nearly 1,000 employees across the nation in limbo about their employment, as the company collapses into voluntary admission.
The closures will see 11 shops shut in NSW, nine in Victoria, Seven in Queensland, three South Australian stores, six Western Australian stores and one in Tasmania.
But the administrators have also promised that, where possible, employees with be redeployed in other locations.
The collapse of Jeanswest comes amid a tumultuous time for Australian retailers – with Harris Scarfe recently coming under the hammer in similar circumstances, Bardot, Bose, EB Games, Curious Planet and Kaufland also bailing out of the market with closures.