The iconic casual fashion retailer is the latest to put pressure on its stores, even though its online store continues to operate.
Australian fashion retailer Jeans West plans to close 90 stores and risk 600 jobs after the owner is appointed as appointed manager.
With its history dating back to 1972, the brand has been well recognized for over half a century, but the brand could disappear from the market as mid-term fashion brands face pressure from rising costs, lower consumer spending, and wider competition from online fashion.
Lindsay Bainbridge, Andrew Yeau and pitcher partner David Vasdevan say Melbourne has taken over the business and all the restructuring options remain on the table.
Bainbridge confirmed that the brand and online stores will continue to trade, but he did not give a timeline for the store’s closure.
“The owners have done everything they can to maintain Janswest, but the market situation means that maintaining brick and mortar stores is not viable and unlikely to improve,” he said.
Jeans West has been struggling for a while. Hong Kong-based company Harbor Guidance purchased the brand from Management in 2020.
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Administrators in 2020 said JeanSwest paid employees up to $50 million to creditors, including $2.6 million.
At the time, there were 146 stores and employing nearly 1,000 people. To survive, 37 stores were closed and 263 staff were redundant.
But brands couldn’t recover as Australian consumers have shifted more and more towards online platforms like Shein, Temu and Amazon, which are undercutting traditional retailers with cheaper prices and aggressive discounts.
It is unlikely that strict trading conditions will improve
Retail conditions have deteriorated in recent years, and inflation and cost-of-living pressures have led to Australians having lower disposable incomes.
Bainbridge said the owners cited “increasingly strict” trading terms for Australian retailers, caused by lower discretionary spending and increased costs of living.
“They deeply regret the impact of the store closure on team members and their customers, and we are now working with teams across the country,” Bainbridge said.
“This is a tough day for hundreds of Jans West team members. We will work directly with them to provide clarity and information about the next steps.”
The collapse of Jeans West follows the recent ending of mosaic brands, including Rivers, Noni B and Millers.
The shutdown closed almost 700 stores, lost 2,800 jobs, and creditors owed more than $318 million.
According to the latest Australia Post e-commerce report, consumers spent a record $69 billion on online shopping last year, up 12% from the previous year, narrowing down brick and mortar retailers further.
What’s next?
The manager confirmed that the West Jeans store was temporarily open while stock was cleared.
“We will open the doors of all our stores and sell online to clear all our shares and ensure we return to creditors,” Bainbridge said.
The store continues to honor all gift cards and loyalty points. Jeans West Stores in New Zealand will not be affected.
The creditors meeting will be set for April 4th, when discussing Jeans West’s fate and potential rescue plans.
