Australian retailer Jeanswest is saved by new buyer – saving more than 600 staff

Jeanswest is saved from closure and 680 employees keep their jobs after company is bought by iconic brand at the eleventh hour

  • 680 Jeanswest employees will keep their jobs after it was saved from closure 
  • The brand went into administration in January but has now been purchased
  • At least 37 Australian stores will still close, costing 263 employees their jobs
  • Move comes after more than a dozen iconic brands collapsed in recent years 

About 680 Jeanswest employees will keep their jobs after the iconic brand was saved from closure.

The company went into voluntary administration last month after falling victim to the retail downturn which has destroyed more than a dozen Australian brands in the last three years.

But on Tuesday, administrators from KPMG confirmed they had found a buyer in Harbour Guidance Pty Ltd, an Australian partner company to Hong Kong based Harbour Guide Ltd.

The sale should be completed by mid-March.

About 680 Jeanswest employees will keep their jobs after the iconic brand was saved from closure

Approximately 106 stores will be retained in the sale and the new owners hope to reinvigorate the business, known for its denim and maternity lines. 

All 680 employees are expected to keep their jobs in the sale.

The acquisition will not save the 37 stores which have already been flagged to close down. 

All 263 of the employees within those stores are expected to be made redundant.   

‘This is a great result for all parties,’ KPMG restructuring partner James Stewart said on Tuesday. 

The brand is most famous for its line of denim (model pictured in denim dress) and maternity wear

The brand is most famous for its line of denim (model pictured in denim dress) and maternity wear

‘Retail is a people business and the administrators greatly appreciate the resilience of the Jeanswest staff through the administration process.’

George Yeung, the managing director of Harbour Guidance, said his company hoped to give the brand a new lease on life. 

‘The acquisition of Jeanswest business will present an opportunity to rejuvenate this iconic brand well known to the Australian community,’ he said.

‘We are committed to continue servicing Australian communities and grow the Jeanswest brand organically.’

Jeanswest stores that will still close down amid the sale include: Castle Towers, Macarthur, Miranda, Burleigh, Maroochydore, Karrinyup, Mandurah, Docklands and Eastland. 

While Jeanswest has been saved, a growing list of Australian businesses have collapsed as a result of decreased customer spending in store.

The new owner hopes to reinvigorate the brand to bring in new customers as well as old

The new owner hopes to reinvigorate the brand to bring in new customers as well as old 

THE VICTIMS OF AUSTRALIA’S RETAIL APOCALYPSE 

2016: Dick Smith, Masters hardware, Payless Shoes

2017: Topshop Australia

2018: Avon, Espirit, Toys ‘R’ Us, Max Brenner, Roger David

2019: Ed Harry, Diana Ferrari, Napoleon Perdis, Ziera, Bardot, Harris Scarfe, Criniti’s

2020: Jeanswest, Colette Hayman, EB Games, Co-op bookstore, Ishka

Most recently, Harris Scarfe, Bardot and Colette Hayman announced they would be forced to close.

Iconic Australian car brand Holden is also shutting up shop and will stop manufacturing and importing cars after first opening in 1856. 

Restaurant chains have also not been immune.

In 2018, most Max Brenner stores were forced out of business while the end of 2019 also signalled the end of Criniti’s stores across the nation.

Another high-profile administration was makeup line Napoleon Perdis.

But the beauty brand was later saved by a creditor, similar to the current Jeanswest deal. 

While Jeanswest has been saved, a growing list of Australian businesses have collapsed as a result of decreased customer spending in store

While Jeanswest has been saved, a growing list of Australian businesses have collapsed as a result of decreased customer spending in store



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