Home >

Another Clothing Giant Is Falling Down! JEANSWEST Announces Bankruptcy In Australia

2020/1/17 15:19:00 0

Jeanswest

Another clothing giant has fallen!

According to the Australian daily mail, Australia's clothing brand JEANSWEST (Jeanswest) announced its voluntary trust program in January 15th and began to enter bankruptcy and liquidation phase. This also means that the former clothing giant JEANSWEST went bankrupt in this part of Australia.

Peter Gothard and James Stewart from KPMG (KPMG), one of the four largest accounting firms, were appointed voluntary trustees of JEANSWEST (Jeanswest Corporation) Australia. In addition, this trust does not concern JEANSWEST's New Zealand business.

At present, JEANSWEST has 146 stores in Australia with 998 employees. These stores will be closed down gradually, which will also cause nearly 1000 employees to lose their jobs.

  JEANSWEST defeated Australia

Founded in 1972, JEANSWEST is one of the most representative Australian local clothing brands.

At that time, the two brothers of Yang Zhao and Yang Xun set up an Asahi garment factory in Hongkong to make OEM processing for it. "Orders are always passive by others, and only by creating famous brands, the development of retail is the way out." In 1990, the two brothers turned around and bought JEANSWEST, and soon became Australia's second largest casual wear chain brand.

JEANSWEST also once expanded its stores to every corner of the globe, and has been well received in China, Australia, Russia, the Middle East and New Zealand.

However, the sudden collapse of JEANSWEST in Australia is not surprising.

Since 2019, Australia's retail industry has entered a terrorist collapse. The daily post predicted in April 2019 that Australia will move towards an inevitable recession before the end of the year.

According to statistics, as of the end of 2019, there were more than 9100 stores closed in the whole Australian retail industry. At the end of last year, Australia's closed stores included many well-known brands at home and abroad, including retail stores including Sears, Kmarts, Party City, Walgreens, Barney and so on. Payless also means closing 2500 stores, which could be the largest retail settlement ever.

The overall economic slowdown in Australia, the impact of online shopping on the real economy, and lower purchasing power of consumers are all the "invisible hands" behind these phenomena.

Actually, not only Australia, but also the world's clothing industry has been experiencing a cold winter in the past two years. Vitoria's secret store closes 83 stores and stops the show. Burberry plans to close its 38 stores (or 1/10) globally. Abercrombie & Fitch has closed 475 stores and plans to close 40 stores. GAP will close 230 stores in the next two years, and Forever 21 has officially declared bankruptcy.

What is even more detrimental is that since September 2019, the "Australia" fire, which was "discredit", has been burned for 5 months, and has not yet been effectively controlled. Australia's continued economic downturn is inevitable.

This "cold" external environment has also accelerated the speed of JEANSWEST slipping into the abyss.

  JEANSWEST's highlights and failures in China

In 1993, JEANSWEST officially entered the Chinese mainland market and opened its first store in Shanghai. At that time, China was in the initial stage of reform and opening up, and the concept of brand had not yet formed. A series of international brands such as JEANSWEST and Baleno, ESPRIT, Giordano, burshlung and so on seized this bonus and ushered in the climax of their career.

Since then, JEANSWEST has begun sweeping across the country. Because of its low price positioning and sales strategy, it has been highly praised in the vast number of two or three tier cities. In particular, it is believed that for the 70 and 80's, no one knows and nobody knows, it is a common memory of many "town youth".

In 2013, JEANSWEST has more than 2500 stores in the whole country, with sales of nearly HK $5 billion, which is called the mainland leisure dress leader. This is also the highlight of JEANSWEST.

However, in the next few years, JEANSWEST suffered from Waterloo.

From 5 billion to 4 billion, 2 billion 800 million, 1 billion 900 million, and 1 billion 600 million, JEANSWEST's sales performance declined all the time, accompanied by shops and layoffs.

Layoffs of more than 6000 people, more than 1300 stores, 65% decline in performance. This is a true portrayal of JEANSWEST since 2013. JEANSWEST, which used to be the VIP of the shopping malls, can only see its figure in the 345 tier city.

JEANSWEST's mainland China has been bogged down in its performance and has to go to the "cheap sale" step. In August 27, 2018, JEANSWEST's parent company sunrise group announced that it would sell the mainland's clothing retail business, which is a loss of 800 million Hong Kong dollars, to JEANSWEST's brand, Yang Zhao and Yang Xun brothers. JEANSWEST's garment business in mainland China has been stripped.

What causes JEANSWEST's decline? Is it the impact of the electricity supplier of the sunrise group, the parent company?

In fairness, the impact of the electricity supplier has a certain impact, but this is definitely not the main reason. It thrive and thrive. JEANSWEST's success in mainland China was mainly caught up with the spring breeze of reform and opening up and stood on the draught. But the real reason for its failure is only in itself.

JEANSWEST's fashion and style innovation capability has not kept pace with the times. Its style is old and its renewal rate is too slow. The product has been unable to meet the increasing consumer demand of consumers.

This time, JEANSWEST's closure in Australia will not directly affect its business in mainland China, but the road ahead will be very difficult.

Source: Lian Shang net: herd.

  • Related reading

47 Country Zara Survey: Buying Clothes Is The Most Expensive In Brazil

Instant news
|
2020/1/17 15:19:00
0

Giordano International Acquisition Of Part GIO FASHIONS W.L.L. Rights

Instant news
|
2020/1/17 15:15:00
0

Behind The National Tide And Lo Skirt: What Opportunities Are There In The Apparel Industry Chain?

Instant news
|
2020/1/17 11:31:00
188

Experience Is Hard To Do. Little Red Book Will Close All Offline Stores.

Instant news
|
2020/1/17 11:31:00
53

Japanese Clothing Stores Sell Crisis

Instant news
|
2020/1/17 11:31:00
57
Read the next article

Is Net Hong Really The Savior Of A Listed Company?

In the evening of January 15th, the new culture announced that the company recently signed the framework agreement with the American wrist (Shanghai) Network Technology Co., Ltd.