Retail woes hit Laura Ashley
TURMOIL in the retail sector has claimed another high-profile victim as the Australian arm of homewares and fashion house Laura Ashley again collapses into administration.
KordaMentha partners Craig Shepard and Leanne Chesser have been appointed administrators for the retailer.
It comes after menswear chain Roger David closed last weekend, joining a long list of other brands that have collapsed or been restructured including Topshop, Rhodes & Beckett, Maggie T, Payless Shoes, Marcs and David Lawrence.
Laura Ashley, operated under licence from the Laura Ashley company in Britain, has 18 stores and 100 employees in Australia.
“The business has been hurt by the same factors affecting many other fashion retailers — a becalmed retail environment, rising fixed costs and fierce competition from online retailers,” Mr Shepard said in a statement.
It is the second time Laura Ashley has been put in administration. The last time was almost three years ago.
“The capital requirements to revive and grow the business became too burdensome as retail conditions became tougher,” Mr Shepard said.
Immediate priorities for the administrators are to review the business, call for expressions of interest in buying the stock and licence and to clear as much stock as possible in the Christmas trading period.
The British parent company is not affected by the administration of the Australian arm.
Laura Ashley was formed in England in 1953 by Laura and Bernard Ashley and came to Australia 35 years ago.
When on holiday in Italy in 1952, the film Roman Holiday was released and Audrey Hepburn’s headscarves became a fashion trend that inspired the pair, KordaMentha said.
They began producing scarfs, then tea towels and placemats.
At its peak here, Laura Ashley had more than 45 stores.
The first meeting of creditors will be held in Melbourne on December 13.
There are four Laura Ashley stores in Victoria — at Bundoora, South Melbourne, Nunawading and in the CBD, at the Emporium.
The business has been hurt by the same factors affecting many other fashion retailers ...
JOINT ADMINISTRATOR CRAIG SHEPARD