Australian fashion and sporting brand Skins applies for bankruptcy – blaming a string of poor business decisions for its collapse
- Another label has fallen victim to ailing retail sector and applied for bankruptcy
- Sportswear manufacturer Skins has announced the new in a public statement
- Chairman Jaimie Fuller said it was based on poor business decisions and the GFC
- Mr Fuller said the brand was going to change ownership but would not disappear
Another iconic Australian fashion label has fallen victim to the poor retail market and announced it has applied for voluntary bankruptcy.
Sportswear manufacturer SKINS chairman Jaimie Fuller confirmed last week in a lengthy public statement that the business had in deed applied for bankruptcy.
‘I am devastated to announce that today SKINS has filed for bankruptcy with the Swiss Court,’ Mr Fuller wrote in the statement.’
Sportswear manufacturer Skins chairman Jaimie Fuller confirmed last week in a lengthy public statement that the business had in deed applied for bankruptcy
Skins are a range of sports compression garments that are designed to enhance performance and recovery.
Mr Fuller described how ‘enormously regretful’ he was to have to reveal the news, saying his management team had left no stone upturned when trying to avoid the decision.
‘Even as late as yesterday, it looked like there was an option for avoiding this action but events conspired against us and left us with no option at all,’ Mr Fuller said.
The chairman said a trustee was going to be appointed to take on the responsibility, and the company, which wouldn’t disappear completely, but rather change ownership.
Mr Fuller said there were a number of contributing factors for the decision, but the biggest reason was the GFC.
‘When the global financial crisis (GFC) hit in 2008, I sold a portion of SKINS to a private equity firm. I also made a lousy deal,’ he said.
Mr Fuller said in order to get out of the private equity arrangement he needed to borrow money from a Japanese partner, but it was unsustainable to replay to loan.
The compression garment company was founded in 1996 by ski fan Brad Duffy, but was bought into by Mr Fuller in 2002.
Chairman Jaimie Fuller said there were a number of contributing factors for the decision, but the biggest reason was the GFC.
Skins is the latest fashion label to fall victim to the poor retail market and announce it has applied for voluntary bankruptcy.
The chairman said during his tenure Skins had many noteworthy achievements, including changing world cycling governance and bringing attention to the issue of drugs in sport.
He said the company also played a role in calling out ‘dodgy decisions of FIFA’ and helped bringing greater awareness of homophobia in sport.
‘Everyone at SKINS has been enormously proud of our work in these and other areas,’ Mr Fuller said.
The chairman concluded by acknowledging the hard work and dedication of all the Skins staff and partners around the world, which he credited as a ‘fantastic team’.
‘I thank you all from the bottom of my heart, and wish you all the best for your futures. I am so, so sorry that this has happened and am simply devastated.
‘Please be assured that I have tried everything possible to avoid having to take this action today. Absolutely everything,’ he said.
News of the recent bankruptcy comes less than a week after Australian menswear retailer Ed Harry announced it had gone into voluntary administration.
The menswear label is just one of dozens of Aussie labels to succumb to the poor retail market in recent months, including Maggie T, Diana Ferrari and Roger David.