Jeanswest has collapsed, with more than 90 stores set to close within months. The decision will impact over 600 employees across Australia.
Administrators from Pitcher Partners confirmed the shutdown on Wednesday. Harbour Guidance, the company’s owner, cited difficult trading conditions.
Figure 1: Jeanswest shuts 90 stores across Australia
Five-Year Struggle Ends with Store Closures
Jeanswest previously entered administration in January 2020. Hong Kong business Harbour Guidance rescued the company. However, efforts to sustain operations failed due to declining consumer spending.
Administrator Lindsay Bainbridge confirmed the decision to close stores.
“The owners have done everything they can to keep Jeanswest going,” Bainbridge said. “But market conditions mean sustaining bricks-and-mortar stores is not viable and unlikely to improve.”
Jeanswest has operated in Australia for more than 50 years. It opened its first store in Perth in 1972 and expanded nationwide during the 1980s.
Administrators Outline Next Steps
Administrators have initiated the process of closing all physical stores. They confirmed the business will continue online.
Bainbridge addressed the impact on workers and customers.
“They deeply regret the impact of store closures on their team members and their customers,” he said. “We will be working now with teams across the country.”
Administrators confirmed that store closures will begin immediately. The retailer will sell stock at discounted prices to repay creditors.
“We will be opening the doors of all stores and selling online to clear all stock to secure a return to creditors,” Bainbridge said.
Figure 2: Jeanwest’s administrators have initiated the process of closing all physical stores
Uncertainty Over Employee Entitlements
Jeanswest employs more than 600 workers across Australia. Many will lose their jobs as store closures progress.
Administrators are assessing outstanding entitlements.
“This is a hard day for hundreds of Jeanswest team members,” Bainbridge said. “We will be working directly with the team members to provide clarity and information about the next steps.”
The federal government has been contacted regarding entitlements owed to workers. No official statement has been issued on whether they will receive fast-tracked assistance.
Retail Sector Faces Ongoing Challenges
Jeanswest’s collapse follows a series of retail insolvencies in Australia.
Mosaic Brands, which owned Rivers, Noni B, and Katies, collapsed last year. The company employed 2,750 workers across 651 stores in Australia and New Zealand.
Mosaic owed creditors nearly $250 million. Administrators confirmed in January that no buyers were found for its brands. All stores will close in the coming months.
Figure 3: Katies stores are closing around the country after its parent company Mosaic collapsed last year
Mosaic workers are owed $21 million in entitlements. The federal government confirmed an additional $870,000 in unpaid superannuation.
Jeanswest’s administrators are still calculating entitlements owed to affected employees.
Impact on New Zealand Operations
Jeanswest operates several stores in New Zealand. Administrators confirmed that those stores will remain open.
No further details were provided on potential changes to New Zealand operations.
Jeanswest’s Journey from Success to Closure
Jeanswest has been a staple in Australian retail since 1972. It expanded rapidly in the 1980s and became a recognised brand.
Hong Kong firm Glorious Sun purchased the company in 1994. Private company Howsea Limited acquired it in 2017.
Harbour Guidance took over in 2020 after the first administration. Attempts to stabilise the business failed due to declining consumer demand and rising operational costs.
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Retail Industry Struggles in a Changing Economy
Australia’s retail sector continues to face challenges. Rising living costs have led to reduced consumer spending.
Retailers with large physical footprints struggle to maintain profitability. Many have shifted focus to online operations.
Jeanswest will follow this trend, continuing as an online retailer. The future of its digital business remains uncertain.
Administrators will oversee the restructuring process in the coming months.
