Jeanswest tears itself to pieces

Via Domain:

National fashion chain Jeanswest will shut nearly 40 stores across the country, running the tally of retail store closures to over 200 in the new year.

KPMG administrators Peter Gothard and James Stewart announced on Thursday the company’s restructure would result in 37 stores being closed and 263 staff made redundant, including 21 head office staff.

There are hopes a suitable buyer will emerge for the business, which was founded in 1972 and had 146 stores across the country, employing nearly 1000 people. Mr Stewart said the store closures were disappointing but necessary if the brand was to find a buyer.

The rest may go down as well yet.

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Comments

  1. Can’t say I’m going to care too much. They never had clothes iny size and the few times i ventured into a store I either would get ignored or dismissed with attitude. So screw them.

  2. good luck to anyone buying a 2nd tier bricks n’ mortar denim retailer, if they can make money out of that sort of lemon they must be sharp operators.

    • Agreed. High street retail of a middling brand in this environment. Crazy, brave or Crazy brave!

      I just jumped on their website to see their offerings / price points. They sell their own brand stuff and $80 (or $79.99) standard price for jeans is pretty steep for a non-branded. They’d be getting eaten alive by folks like Uniqlo at the lower end and by any branded stuff (Levi’s, Nudie etc) on the higher end.

      Good luck to whoever has a go on this. Personally I’d like to see the Shoppies industry fund buy it and run it as an investment for their members and get all their union buddies to shop there. Be good for them to get first hand experience of actually running a business.

      • darklydrawlMEMBER

        Target Australia. 2 x good quality jeans from website (with free delivery to front door) – $50 AUD. Nice fit and cut. Too easy. Didn’t even have to leave home.

        • HadronCollision

          2 good quality jeans for $50

          Someone somewhere is getting screwed (maybe in Bangladesh )
          Also, good quality ?

  3. Unfavourable demographics, internet shopping, fatter customers and trousers that look terrible on anybody who isn’t thin. No wonder they couldn’t make a buck.

    • HadronCollision

      Pfft fatties need to stop leaning and start lifting more Stronglifts (and less Big Macs) yo.

  4. Jumping jack flash

    “37 stores being closed and 263 staff made redundant, including 21 head office staff”

    Boom times.
    I wonder about all the debt attached to those incomes…

  5. Do you have any idea of the kind of rent they pay to be in a mall, it;s a percentage of the sales not just rent, the are getting raped by rent and greedy center landlords, being that a pair of jeans cost about $3 – $4 to buy from China and they sell for $50 then clearly the business model is not the issue it is the cost of renting in the wonderful RE world of Oz

    • We worked it out that about 90% of rents end up in the bankers pocket – not as profit in the landlord’s bank account.

      The gearing model of business requires that capital be “put to work”, meaning that compensation for the contribution of the landlord themselves is basically commensurate with their 10% (or less) deposit.

      Our own business eschews all debt – except a credit card with revolving debt we pay in full each cycle.

      It is utterly absurd that the “landlord” exercises immense control over tenants, while in reality being only just a serf themselves.

      If we could return to a model where the purpose of banking is to re-distribute available finance from savings etc to worthwhile borrowers in the national interest…

      Ah something wrong – must have been a dream.

  6. HadronCollision

    Their name brand stuff is rubbish
    Their size 30s have like a 32 waist
    Compared to my 28 superdrys it’s like a drunken nanna sewed them together for a larf

  7. HadronCollision

    JWs issue is they havent got enough international students paying them a rebate on their wages!