Ksubi closing its doors

 

ksubi-backsoonAustralian street fashion icon Ksubi is closing its boutiques and is not trading via its online store.

The cult fashion label was placed into administration late last year and was reportedly trying to find a buyer or investor.

Inside Retail understands that Ksubi’s fate is in the hands of liquidation and bankruptcy firm, Veritas Advisory.

Inside Retail can also report that Ksubi’s store staff were informed of the store closures this morning.

The fashion icon has stores in Westfield Sydney, Sydney’s Oxford St, Melbourne Central, Chapel St, among others.

Its online store is currently not trading and features the sign “the online store will be back soon”.

Ksubi was launched as a denim brand in 2000 and went onto gain cult status and international exposure.

It was founded by Sydney designers George Gorrow, Gareth Moody, and Dan Single, who are no longer involved in the business.

Ksubi was purchased by Bleach Group, which also owns Insight, after the streetwear brand hit financial woes in 2008.

As of 2013, Ksubi had six retail stores in Australia operated via a franchise agreement between Bleach Group and an undisclosed third party.

It had a five year concession store deal with David Jones that ended last year following poor sales.

Ksubi is also wholesaled in fashion chains, such as General Pants, and is worn by the likes of supermodel Miranda Kerr and Nicole Ritchie.

It was placed in receivership in December and 60 head office staff lost their jobs, according to AAP.

“It’s not over. All I can say is that [there] are American investors [who] are discussing with the Australian financiers,” said an anonymous source to AAP.

Andrew Spring, partner of administrators Jirsch Sutherland, said in December that it was “optimistic” about finding a buyer.

Representatives from the retailer and its administrator, Vincents Chartered Accounts, refused comment to Inside Retail.

Parent company Bleach Group was also put in voluntary administration in mid-2013, following a major company restructure.

The news follows the demise of Lisa Ho in late 2013 and the ongoing woes of other Australian design icons, like Bettina Liano.

Comments

3 comments

  1. Pat posted on February 14, 2014

    6 stores with 60 head office staff? Wow! They'd want to be fairly profitable stores with those sort of overheads.

    • Gary posted on February 14, 2014

      The 60 staff were across the whole business so included Insight staff, designers, marketing etc. They also had a decent sized wholesale business internationally that required staffing. Worth mentioning that a significant number of those staff weren't paid super for a long time in the lead up to this trainwreck.

  2. len posted on February 17, 2014

    well they drink there own bath water , the company are not real players

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