Womenswear retailer enters administration
National insolvency firm Jirsch Sutherland is currently assessing the business, meeting with creditors and managing the closure of the unprofitable stores in preparation of selling Zachary the Label as a going concern.
The first creditors’ meeting will be held on 7 March.
The brand was placed into voluntary administration on 26 February. According to Jirsch Sutherland managing partner Glenn Crisp, the business lacked the funds required to continue the operation of the business, produce stock and market the label.
“Despite the brand’s current issues, this administration presents an opportunity to purchase a known fashion brand in addition to an established online store and social media presence,” Crisp said.
Zachary the Label is just one of a number of established Australian fashion brands that have gone into administration or closed outlets over the past year as a result of a range of pressures.
“As the online retail marketplace expands and traditional geographical barriers to entry are removed, Australian retailers are dealing with more competition than ever before,” Crisp said.
Zachary the Label bolsters sales from its five retail outlets with an online shop and a ‘shop insta’ on its Instagram account, which enables customers in Australia, New Zealand, the US and UK to place orders.
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