Australian retail collapses show no sign of letting up with administrators called in to find a resolution to the financial woes of a Melbourne-headquartered fashion retailer.
Female fashion company Zachary The Label was the brainchild of designer Effie Kats, producing and selling a broad range of women’s clothing online and through its network of five boutique stores, including in Melbourne’s Westfield Fountain Gate shopping centre.
However, administrator Glenn Crisp, managing partner of Jirsch Sutherland Melbourne, said the retailer’s rapid expansion and restricted funds ultimately led to its collapse.
Mr Crisp expressed hope that the business may find a suitor to revive its fortunes.
“Despite the brand’s current issues, this administration presents an opportunity to purchase a known fashion brand in addition to an established online store and social media presence,” he said.
Jirsch Sutherland has been kept busy with the slew of retailers falling into administration. The firm was most recently appointed to find a buyer for a long-established camping and outdoor retailer.
“As the online retail marketplace expands and traditional geographical barriers to entry are removed, Australian retailers are dealing with more competition than ever before,” said Mr Crisp.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.