Another one down: Jeanswest the latest retailer in administration — here’s why
Clothing label Jeanswest is the latest big-name retailer to go under.
The Australian-founded but now internationally-owned business has entered voluntary administration, blaming online competition and tough market conditions for its downfall.
KPMG has been appointed to oversee the administration, saying they will consider “all options for the restructure or sale”.
Jeanswest has 32 stores in Victoria among its suite of more than 100 Australia-wide, and employs nearly 1000 staff.
Eli Greenblatt, a finance writer at The Australian, told 3AW Breakfast rising rents in the face of online competitors were taking a toll across Melbourne.
“If you walk up and down Chapel Street you’ll see probably an historic high ‘For Lease’ signs,” he said.
“Jeanswest tried to stick it out — they have a lot of stores, possibly too many.”
It’s not all bad news for denim stores.
Greenblatt said Just Jeans is “doing very well” and just recorded one of their best years in a decade.
Click PLAY to hear more from Greenblatt with Ross and John, including his explanation as to why some landlords prefer to keep their shopfronts empty