Men’s clothier latest in long line of retail collapses

THE coronavirus pandemic was a key factor in the downfall of men’s suit and shirt retailer TM Lewin Australia, administrators say.

The retailer was put in administration this month, owing $10 million and placing the future of its six stores across Melbourne, Sydney and Brisbane, and 40 jobs, in doubt. Stuart McCallum, Adam Nikitins and Colby O’Brien, directors of Ernest & Young’s Melbourne office, have been appointed joint administrators.

The collapse comes after TM Lewin’s British parent failed. Dozens of stores there closed and hundreds of workers lost their jobs as the company moved sales online.

Here, about 70 creditors are owed about $10 million, of which about $8.6 million is owed to TM Lewin-related entities in the UK.

“This is another unfortunate example of a retail business which has needed to call in administrators because of the impact of COVID-19,” Mr McCallum said.

“The TM Lewin brand is very well known and respected in the Australian market.”

Mr McCallum said stores had been closed since March due to the pandemic but all staff continued to be employed and were receiving JobKeeper.

The administrators were considering reopening the Sydney and Brisbane stores.

The reopening of four in Melbourne — two in the CBD, one at Chadstone and one at Westfield Doncaster — would depend on lockdown restrictions easing.

A “number of unsolicited approaches” had been made ahead of the sale process.

The collapse of the parent company combined with the pandemic meant administration couldn’t be avoided, the administrators said.

Despite the pandemic’s effect on the economy, Mr McCallum said administrators hoped to save the Australian arm of the company.