Jeanswest, one of New Zealand’s top fashion retailers, has begun shuttering all its outlets permanently over the next weeks. Today’s owners poured their lives into sustaining the community pillar. Sadly though, they were unable to identify new buyers for any of the chains. The closure impacts over 90 stores across the country and leaves 600+ employees with an uncertain future.
These financial issues were underscored when Jeanswest went into administration in January 2020. Harbour Guidance, a company based in Hong Kong, had previously rescued the business. In recent years it has come under a severe attack from a crippling debt load. As of the date of administration, Jeanswest was reportedly $250 million in liabilities to its creditors. The now-defunct company owes $870,000 in unpaid superannuation payments.
Efforts to Sustain Operations
Lindsay Bainbridge, who represented the owners, argued that there had been just about every effort in the world to save the retailer.
"The owners have done everything they can to keep Jeanswest going," said Lindsay Bainbridge.
After all these attempts, the search for new ownership went cold. Bainbridge went on to share the owners’ deep sadness about the effect this has had on employees and customers.
"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," Bainbridge added.
Upcoming Store Closures
All Jeanswest stores in New Zealand will likely close soon as well. The new-to-us company currently has an awesome mid-season clearance! Administrators hope that all stock will soon be sold off at knock-down prices! All is not lost on the brand’s potential life online. Administrators are working on ways to make it remain available in the for-profit market.
She said the administrators are working hard through entitlements that might be owed employees as part of the closure process. At the same time, the retail environment has been dealt another blow after last week’s collapse of Mosaic, another retail collective.
Future Prospects
As physical stores shut their doors, Jeanswest’s administrators are still optimistic about keeping the brand alive online. This transition might be just the lifeline the brand needs, one that saves its legacy in a digital amber, forever. Specifics of such plans are still up in the air as leaders chart a course through these turbulent waters.
