The court ordered the Alliance Fashion to liquidate due to concerns about stagnation following the landlord’s application for arrears of rent.
Famous Australian women’s first fashion retailer Ally Fashion officially took part in the liquidation, with 51 stores closed and 250 jobs lost.
Founded in 2001, the retailer grew to operate more than 160 stores nationwide before facing economic hardships that led to collapse.
On February 28, a federal court in Australia ordered the liquidation of allies’ fashions due to bankruptcy concerns following a late-term application for rent from the landlord.
The court appointed BDO Australia’s Jeff Marsden and the Duncan Club as liquidators. As part of a “urgent assessment,” liquidators determined that shutting down low-performing stores would improve the company’s financial viability.
19 of the stores that will be closed are in Queensland, 11 in New South Wales, 8 in Victoria, 7 in South Australia, and six in Western Australia.
51 stores will be closed forever, but the remaining 109 locations will continue to trade under a licensing agreement with a company linked to the ally’s fashion director, David Dai.
“Ally Fashion is a renowned Australian brand with a dedicated team,” liquidator Jeff Marsden said in a statement.
“While the closure of low-performing stores and entering into licensing agreements will allow businesses to remain open in the short term, we will urgently consider the options to rebuild, recapitulate or sell our business.”
Cost of living continues to affect retailers
Ally Fashion liquidation comes when other Australian retailers are struggling too. Recently, Mosaic Brands, which owns Noni B, Rivers and Millers, announced its store closures due to declining sales.
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High-end retailer Harolds also faced financial difficulties and joined the voluntary administration earlier this year.
Data from the Australian Bureau of Statistics (ABS) showed retail sales increased by 3.8% per year to $37.07 billion in January, but the Business Lobby Group says the terms of the transaction are still difficult.
“High crime rates, increased costs for doing business, demand to stay competitive, and lack of adequate government support have created a counter-effective environment for retailers.”
“We urge governments to promote policies that promote digital transformation for small and medium-sized businesses. AI advancements and technology will help vulnerable businesses fight the tide of growing. retail crime. “
Fleur Brown, Chief Industrial Affairs Officer of the Australian Association of Retailers, said the cost-of-living pressure continues to have a major impact on businesses.
“The Reserve Bank of Australia’s April decision is important in shaping consumer confidence and terms of business. While interest rate decisions tend to be lagging behind consumer spending, we are cautiously optimistic and will improve terms of business.”
