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Fashion brands David Lawrence and Marcs put in voluntary administration Fashion brands David Lawrence and Marcs put in voluntary administration
(about 1 hour later)
The fashion brands David Lawrence and Marcs have been placed in voluntary administration.The fashion brands David Lawrence and Marcs have been placed in voluntary administration.
Administrator Rodgers Reidy’s director, Geoffrey Reidy, said the two brands would continue to trade while his team reviewed their operations before a planned sale of the businesses.Administrator Rodgers Reidy’s director, Geoffrey Reidy, said the two brands would continue to trade while his team reviewed their operations before a planned sale of the businesses.
The sole director of the companies operating the labels, Malcolm Webster, says it has been necessary to appoint administrators because of deteriorating sales, market conditions and poor cash flow.The sole director of the companies operating the labels, Malcolm Webster, says it has been necessary to appoint administrators because of deteriorating sales, market conditions and poor cash flow.
The brands operate from 52 standalone stores, 11 outlets and 140 concession stores in Australia and New Zealand.The brands operate from 52 standalone stores, 11 outlets and 140 concession stores in Australia and New Zealand.
Ten of those stores and 42 staff are in New Zealand, while 1,130 staff, including 260 full-time workers, are employed in Australia. Ten of those stores and 42 staff are in New Zealand, while 1,130 staff, including 260 full-time workers, are employed in Australia. They will all remain open while Reidy tries to find a buyer. “It’s business as usual,” a spokesman for the administrator told AAP on Thursday.
The fashion brands have told the administrator all employee wages were paid until 30 January 2017.The fashion brands have told the administrator all employee wages were paid until 30 January 2017.
Staff will hear more about their futures from their managers, while customer gift cards and returns will be honoured as normal, the administrator said. Staff will hear more about their futures from their managers, while customer gift cards and returns will be honoured as normal, the administrator said. Staff were told late on Wednesday the companies behind the brands had been placed in voluntary administration and a hunt for a buyer was underway.
Webster’s Sydney-based company M Webster Holdings bought David Lawrence from Truworth Ltd South Africa Group in 2000 and four years later took the womenswear brand to New Zealand.
In 2006, Webster Holdings bought womenswear and menswear label Marcs from upmarket retailer Oroton.
Webster has long been involved in the retail world, having co-founded British fashion label Jigsaw with John Robinson in 1972. Webster brought Jigsaw to Australia in the early 1990s but the label’s UK parent company took back control of the business in 2016.
Fears about the future of David Lawrence and Marcs comes two months after fellow Australian retailers Payless Shoes and Howards Storage World appointed administrators. Children’s retailer Pumpkin Patch also entered receivership last October.
Reidy told Australian Associated Press on Thursday: “We do appreciate the ongoing support of customers and staff in what is a difficult time for any business and we will do our best to seek out a buyer and get these brands in the hands of a new entity or a restructure that can allow them to go forward. We will do our best to keep people employed but where there are store closures required we will have to make those hard decisions.”
Reidy said it was too early to tell the extent of the financial problems plaguing the brands but he and his team would be searching Australia and overseas to find a buyer.“I’m aware the Marcs business was previously offered for sale last year but they were unable to facilitate a sale,” he said. “We’ll do our own campaign. Often what you find is that a business that couldn’t be sold in the hands of the previous owner can be sold by an administrator because they can address the potential causes that led to the failure and offer a consolidated business.”