This article is from the Australian Property Journal archive
HANDBAG and accessories retailer Colette by Colette Hayman will continue to operate after former Myer chief executive Bernie Brookes acquired the collapsed business, but more than 100 of its stores will close down.
Only 35 shops will remain after 103 are shut, and only 100 of the 300 permanent staff will be retained, and about 200 casual positions.
Deloitte Restructuring Services partners Vaughan Strawbridge, Sam Marsden and Jason Tracy were appointed voluntary administrators early this year and yesterday confirmed the sale of the group to Brookes, who will own 90% of the business.
Former Myer and Woolworths executive John Skellern will be chief executive.
Creditors voted in favour of the transaction last week after several parties submitted offers.
“The new owners bring with them a significant track record in Australian and international retail and are well positioned to reinvigorate the brand across a streamlined 35 store network across Victoria, New South Wales, South Australia, Queensland and Western Australia, and a strong online platform,” Marsden said.
Deloitte Restructuring Services recently sold Australian department store Harris Scarfe.
A string of Australian retailers have collapsed in the face of retail headwinds leading into the pandemic. Among those entering administration have been Bardot, Jeanswest and Tigerlily, but more are expected to hit the wall. Landlords are also facing ongoing problems in negotiating rent relief and lease agreements in the wake of COVID-19, otherwise facing an influx of empty shopfronts.
Those negotiations are hitting turbulence in some cases. Westfield shopping centres landlord Scentre Group recently locked out ASX-listed Mosaic’s brands as well as Strandbags out of 167 stores, while Solomon Lew’s Premier Investments has taken a combative approach to securing rental relief.
A recent Deloitte Access Economics report warns extending the code of conduct could cost commercial property landlords as much as $14.9 billion, far exceeding any state or territory governments COVID-19 cash support.
