Express Digest

Oroton launches sale as store announces $14million losses

Luxury handbag retailer, Oroton, has slashed its prices after collapsing into voluntary administration.

The Australian company, known for its high-end accessories, is now offering its handbags, clutches and umbrellas for less than half of their original price – just in time for Christmas. 

The sought-after Melanie tote bag was $495 but is now listed on the retailer’s website for $125.

Luxury handbag retailer, Oroton, is now offering its handbags (pictured), clutches and umbrellas for less than half of their original price – just in time for Christmas

The Australian company (pictured) has slashed its prices after collapsing into voluntary administration on Thursday

The large Melanie tote was $595 but is on sale for $145 – just $20 more than the traditional size.

The Kiera hobo bag has also dropped from $495 to $195. 

Clutch purses listed for $345 are now $70.

Oroton’s signature baby bag has also dropped from $495 to $148.

The popular small umbrella, which normally sells for $75, can now be purchased for just $29.95. 

The 79-year-old company announced on Thursday morning that it was unable to find a viable option for recapitalising or selling the business following an eight-month strategic review.

Oroton has racked up a $14.2 million loss in 2017. 

The large Melanie tote bag (pictured) was $595 but is now listed on the retailer’s website for $145

Clutch purses listed for $345 is now $70 (pictured)

The popular small umbrella (pictured), which normally sells for $75, can now be purchased for just $29.95

Speaking in a statement to the ASX, interim chief executive, Ross Lane, explained that there was no other solution to the problem.

‘The board is disappointed that it has had to take this step after running such a comprehensive process,’ he said.

‘However, having carefully considered the options available to the Company at the conclusion of its strategic review, it is apparent that voluntary administration is necessary to protect the Oroton business and the future of this iconic Australian brand.

The 59 Oroton stores across the country will continue to trade as usual, while administrators Deloitte Restructuring Services pursue a sale or a recapitalisation, the company said. 

The Bueno large double clutch fell from $295 to $147 (pictured) 

In recent years, the company has suffered falling sales and racked up a $14.2 million loss this year

In recent years, the company has suffered falling sales and racked up a $14.2 million loss in 2017.

The company’s shares, which went into a trading halt on Tuesday while the board finalised the result of its review, had been steadily falling from $7.80 in early 2013 to $2.44 a year ago.

On Monday, they closed at just 43 cents. Oroton joins a string of other Australian fashion retailers in collapsing in the past 18 months.

Topshop and Topman Australia, Marcs, David Lawrence, Herringbone, Rhodes & Beckett, Pumpkin Patch and Payless Shoes have all collapsed in the past 18 months to two years.

 



Read more at DailyMail.co.uk


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