Zachary the Label Voluntary Administration

Australian fashion multichannel retailer Zachary the Label has gone into voluntary administration due to rapid expansion, funding issues as well as increased online and international competition.

Melbourne-based fashion chain Zachary the Label was placed into voluntary administration on Monday 26th February according to insolvency firm Jirsch Sutherland who has been appointed administrators.

Managing partner, Glenn Crisp, of Jirsch Sutherland has confirmed the decision was as a result of rapid expansion, in addition to restricted funds required to continue the operation of the business, produce stock and market the label.

Zachary the Label is just one of a number of established Australian fashion brands that have gone into administration or closed outlets over the past year as a result of a range of pressures, including increased international and online competition.

“As the online retail marketplace expands and traditional geographical barriers to entry are removed, Australian retailers are dealing with more competition than ever before,” says Crisp.

The administrators are currently assessing the business, meeting with creditors and managing the closure of the unprofitable stores in preparation of selling Zachary the Label as a going concern. 

“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,” says Crisp.

Zachary the Label has five retail outlets with an online shop and a ‘shop insta’ on its Instagram account, which enables customers in Australia, New Zealand, the US and UK to place orders. The first creditors’ meeting will be held next Wednesday, March 7.

Never miss our best stories. Sign up to Power Retail’s  free weekly newsletter and find our daily stories on FacebookTwitter and Instagram. 

 

0 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *