Denim brand Jeanswest falls into voluntary administration

04 February 2020 3 min. read

Perth-based fashion clothing company Jeanswest has become the latest Australian retailer to enter voluntary administration. Consultants Peter Gothard and James Stewart from KPMG have been called in to support with the process, as the company looks to restructure its Australian operations.

Jeanswest was founded in 1972, and has since grown into a substantial international operation. The company operates across Australia and New Zealand with well over 200 stores, while its parent company Glorious Sun counts more than 3,000 stores across the globe under various brands. The company specialises in denim and maternity wear.

The company’s financial woes are reportedly a product of the dampened retail climate currently prevalent across Australia. Several other companies have off late also fallen prey to the retail slowdown, with KPMG one of the leading advisors in the administration scene.

Late last year, the Big Four accounting and advisory firm hopped on board to oversee the administration of online furniture retail store Zanui, and not much later, the firm was tapped by fashion retail brand Bardot. And last month, KPMG was appointed to manage the administration of 143-year old wine manufacturing and distribution company McWilliams Wines.

Denim brand Jeanswest falls into voluntary administration

KPMG Australia’s National co-Keader for Restructuring Services James Stewart, who is part of the administration team for Jeanswest, confirmed that Jeanswest’s financial woes have much to do with retail’s economic climate. “Jeanswest is an iconic Australian denim brand, well known in the leisure and casual wear market place. Like many other retailers, the business has been challenged by current tough market conditions and pressure from online competition.”

He added that an effective restructuring operation could provide the company a lifeline for a successful turnaround. “The administration provides an opportunity for Jeanswest to restructure so as to better respond to the challenging Australian retail market,” said Stewart.

Stewart is joined on the project by KPMG Australia Clients & Markets Partner for Restructuring Services Peter Gothard, who indicated that the administration team is keeping all options open for Jeanswest going forward. In the mean time, the company is planned to continue its activities business as usual.

“The administrators will be looking at all options for the restructure or sale of this established Australian retail business and are seeking urgent expressions of interest from parties interested in acquiring or investing in the business,” said Gothard.