Retailer placed in receivership
CLOTHING and footwear retailer Colorado Group has been placed in receivership at the behest of creditors owed $ 400 million.
The company, which operates a chain of 434 stores across Australian and New Zealand, is in the hands of James Stewart, Brendan Richards and Will Colwell, partners at corporate recovery specialist Ferrier Hodgson.
The move was announced by the receivers yesterday and followed an earlier decision by Colorado’s board to appoint voluntary adminis- trators. Colorado houses five well - known speciality brands – JAG, Diana Ferrari and Colorado, Mathers and Williams.
Receiver James Stewart said the group had suffered a decline in performance, largely driven by poor performance of the Coloradobranded stores.
Mr Stewart said other brands were performing well, gi ven market conditions.
‘‘ Mathers and Williams are the largest speciality footwear brands in Australia, while JAG and Diana Ferrari are also very good businesses,’’ he said.
Mr Stewart said all employee entitlements were protected and that all giftcards and lay-bys would be honoured.