FAILED women’s clothing brands David Lawrence and Marcs will close thirteen stores as the search for a buyer for the retailers’ parent company continues.
Geoff Reidy, director of administrator Rodgers Reidy, said the decision was made after a review of the businesses placed in voluntary administration on February 2.
Nine David Lawrence stores and four Marcs outlets will close by February 21 and 10 fulltime staff and another 10 part-time staff will be made redundant. Another 50 staff will be offered jobs in other stores and have the option of taking redundancy payouts.
Mr Reidy said the stores identified for closure had already been earmarked to shut up shop before his firm was appointed as administrators.
“Whilst closing stores is always a difficult decision, we have a responsibility to all staff and all creditors of the business to make it more attractive to any purchaser and reduce short term trading losses,” he said in a statement on Thursday.
Potential buyers for the businesses have until February 22 to lodge their interest.
Mr Reidy said he was pleased with the interest expressed so far and talks were likely to continue beyond next week’s deadline.
When the businesses were placed in administration earlier this month, the sole director of the companies behind the labels, Malcolm Webster, blamed deteriorating sales, poor cash flow and market conditions.
David Lawrence and Marcs are among a string of retailers hit by tough times in the Australian retail market.
Rhodes and Beckett, and Herringbone were placed in voluntary administration last week, leaving the futures of about 140 workers in doubt.
Payless Shoes and Howards Storage World appointed administrators two months ago, while children’s retailer Pumpkin Patch entered receivership last October.
DAVID LAWRENCE STORE CLOSURES
* Fashion Spree, NSW
* Indooroopilly, Qld
* Queens Plaza, Qld
* Carindale, Qld
* Highpoint, Vic
* Eastland, Vic
* Little Collins Street, Vic
* Bridge Road Richmond, Vic
* Perth Enex, WA
MARCS STORE CLOSURES
* Canberra, ACT
* Fashion Spree, NSW
* Pacific Fair, Qld
* Eastland, Vic
Nine David Lawrence stores and four Marcs outlets will close by February 21 and 10 fulltime staff and another 10 part-time staff will be made redundant. Another 50 staff will be offered jobs in other stores and have the option of taking redundancy payouts.
Mr Reidy said the stores identified for closure had already been earmarked to shut up shop before his firm was appointed as administrators.
“Whilst closing stores is always a difficult decision, we have a responsibility to all staff and all creditors of the business to make it more attractive to any purchaser and reduce short term trading losses,” he said in a statement on Thursday.
Potential buyers for the businesses have until February 22 to lodge their interest.
Mr Reidy said he was pleased with the interest expressed so far and talks were likely to continue beyond next week’s deadline.
When the businesses were placed in administration earlier this month, the sole director of the companies behind the labels, Malcolm Webster, blamed deteriorating sales, poor cash flow and market conditions.
David Lawrence and Marcs are among a string of retailers hit by tough times in the Australian retail market.
Rhodes and Beckett, and Herringbone were placed in voluntary administration last week, leaving the futures of about 140 workers in doubt.
Payless Shoes and Howards Storage World appointed administrators two months ago, while children’s retailer Pumpkin Patch entered receivership last October.
DAVID LAWRENCE STORE CLOSURES
* Fashion Spree, NSW
* Indooroopilly, Qld
* Queens Plaza, Qld
* Carindale, Qld
* Highpoint, Vic
* Eastland, Vic
* Little Collins Street, Vic
* Bridge Road Richmond, Vic
* Perth Enex, WA
MARCS STORE CLOSURES
* Canberra, ACT
* Fashion Spree, NSW
* Pacific Fair, Qld
* Eastland, Vic
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