Fashion retailer Jeanswest has been saved by a former shareholder, following the closure of 37 stores and close to 300 redundancies last month.
Jeanswest was placed under voluntary administration last month, with its KPMG administrators announcing at the time that they will work to “maximise the opportunity for this business to be sold or restructured — to give it the best chance to continue”.
And on Tuesday morning, they announced that a sale contract was signed on Monday with Harbour Guidance Pty Ltd, the Australian subsidiary of Hong Kong-based company Harbour Guide Pty Ltd, owned by Mr Chun Fan Yeung.
Mr Yeung owns a minority stake in Jeanswest’s former owner, Howsea Ltd, which acquired Jeanswest in 2017 from Glorious Sun Enterprises in a $41 million deal.
According to a statement by voluntary administrators Peter Gothard and James Stewart, circulated on Tuesday morning, the sale will be completed by mid-March and includes 106 of the retailer’s stores, after 37 unprofitable stores were shut last month.
“This is a great result for all parties,” Mr Stewart said.
While not disclosing the purchase price, Mr Yeung said that Harbour Guidance plans on rejuvenating the “iconic brand well known to the Australian community”.
“We are committed to continue servicing Australian communities and grow the Jeanswest brand organically through an omnichannel service offering,” Mr Yeung said.
Final confirmation of the deal is conditioned on Jeanswest’s landlords agreeing to the revised lease terms with Harbour Guidance.
It has been a tough year for retail so far, with several large retailers shutting up shop including accessories chain Colette by Colette Hayman, which became the latest victim of the unforgiving retail environment late last month.
The bags, jewellery and accessories retailer entered voluntary administration on 31 January and has since been put in the hands of Deloitte administrators Vaughan Strawbridge, Sam Marsden and Jason Tracy.
Prior to this, department store Harris Scarfe and Co-op Bookshops also announced their collapse.
Maja Garaca Djurdjevic is the editor of My Business.
Maja has an extensive career as a journalist across finance, business and market intelligence. Prior to joining Momentum Media, Maja spent several years unravelling social, political and economic intricacies in Eastern Europe.
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