Jeanswest, the once-iconic Australian denim brand that defined ’90s fashion, has been forced to call in administrators to wind up its 90 bricks-and-mortar stores, resulting in the loss of 600 jobs. This move follows a difficult period for Australia’s fashion industry, with several major retail brands facing closures. Just last month, Ally Fashion entered liquidation, costing 250 jobs, while the collapse of Mosaic Brands last year resulted in the closure of stores like Katies, Millers, Rockmans, and Rivers, leading to over 3,000 job losses.
According to QUT marketing expert Professor Gary Mortimer, the company’s downfall can be attributed to a combination of factors that have created a “perfect storm” for the brand. Mortimer pointed out that while the nostalgic appeal of Jeanswest may have once drawn customers, it could no longer sustain the brand. As those who grew up with the brand in the ’80s and ’90s are now in their 50s and 60s, they no longer make up the key demographic. Meanwhile, younger generations have moved to other retailers.
The market, which has become increasingly crowded with competitors, played a significant role in Jeanswest’s decline. The fashion retailer struggled to differentiate itself in an oversaturated market where consumers can buy similar items from multiple stores, including discount department chains. The rise of fast-fashion brands like Uniqlo and Zara in the early 2000s, coupled with the recent surge of online retailers such as Temu and Shein, has further squeezed the company’s market share.
Despite the nostalgic value Jeanswest once held, Mortimer noted that an 18 or 19-year-old today likely wouldn’t consider the brand “cool” anymore, contributing to the brand’s dwindling appeal. The closure is a troubling development for shopping centers as well, with an increasing number of vacant tenancies—around 850—posing challenges for landlords and retail chains alike. Retailers like Myer, with its connection to Just Group brands such as Dotti and JayJays, may also face risks, according to Mortimer.
The closure of Jeanswest also represents a human cost, with nearly 4,000 jobs lost across the Australian fashion sector since last year. Many employees, particularly those in smaller stores, face an uncertain future, with limited job opportunities in the current market.
Jeanswest, which had already entered administration in 2020 and was rescued by Harbour Guidance Pty Ltd, is now moving to restructure the business and focus on its online operations. While the physical stores are set to close, the brand and its online store may continue operations. Lindsay Bainbridge, one of the administrators appointed by Pitcher Partners, stated that the decision to close physical stores was a result of the increasingly tough trading conditions, including reduced consumer spending and the rising cost of living.
Bainbridge emphasized that while this move is difficult, it was necessary for the survival of the brand, which has fought for five years to revive itself. The closure will be felt deeply by staff members, and Bainbridge acknowledged the impact on employees, stating that efforts will be made to provide clarity and support. The company plans to hold a sale to clear stock, aiming to secure a return for creditors. A meeting of creditors is scheduled for April 4.
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