Jeanswest collapses amid retail pain, with 600 staff and 90 stores across Australia to go

Shopping mall mainstay Jeanswest has become the latest victim of a pulback in discretionary spending as shoppers keep a closer eye on their budgets amid ongoing cost-of-living pressures. Administrators were called into parent company Harbour Guidance Pty Ltd on Wednesday — a little over five years after Jeanswest was rescued from complete collapse in 2020. Jeanswest has more than 90 stores across Australia and more than 600 staff. Most could lose their jobs as the brand — which sells mid-market men’s and women’s fashion staples — fights for survival as an online-only business. Lindsay Bainbridge, Andrew Yeo and David Vasudevan from Pitcher Partners Melbourne have been appointed administrators and have started work to restructure the business. “While the bricks and mortar business operations are set to close in due course, the brand and online store may be continuing and all restructuring options remain open,” Pitcher Partners said. Harbour Guidance Pty Ltd is owned by Hong Kong clothing and textiles tycoon Chun Fan Yeung and his family, which had a minority stake in Howsea Ltd — the previous parent company of Jeanswest. Mr Yeung helped pulled Jeanswest back from the brink after the brand entered administration in early 2020 but has since found it difficult to revive sales as trading conditions for Australian retailers become increasingly tough and bricks-and-mortar stores compete with the growing power of online labels, particular fast-fashion platforms such as Temu. “The owners have done everything they can to keep Jeanswest going, but market conditions mean sustaining bricks-and-mortar stores is not viable and unlikely to improve,” Mr Bainbridge said. “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.” Mr Bainbridge acknowledged the impact of the decision on staff. “This is a hard day for hundreds of Jeanswest team members and we will be working directly with the team members to provide clarity and information about the next steps,” he said. Mr Bainbridge said he expected all store stock to go on immediate sale as his team begins the process of restructuring the business. “We will be opening the doors of all stores and selling online to clear all stock to secure a return to creditors,” he said. Born in Perth The national fashion chain was founded by high-flying entrepreneur Alister Norwood, who opened the first Jeanswest store in Perth’s Barrack Street in 1972 — drawing the attention of Perth’s in-crowd, rising business types, trend setters, beach girls and even international rock stars. The business expanded to the east coast before Mr Norwood sold up in the 1990s after key suppliers, including Levi Strauss and Faberge, stopped delivering stock because of mounting debts. Jeanswest was bought by Hong Kong-listed Glorious Sun in 1994 and the brand expanded overseas with operations in Russia, Fiji, Venezuela, Vietnam and China. In 2017, the Australian arm of the business was sold to Howsea Ltd. When Jeanswest Corporation Pty Ltd collapsed in January 2020, it employed 988 staff in 146 stores across Australia. Administrators from KPMG at the time said it owed creditors up to $50 million. Harbour Guidance Pty Ltd came to the rescue a month later after KPMG had trimmed the retailer’s footprint to 106 stores and 680 staff.