Luxury handbag retailer, Oroton, has collapsed into voluntary administration after failing to find a buyer.
The 79-year-old Australian company announced on Thursday morning that it was unable to find a viable option for recapitalising or selling the business following a eight-month strategic review.
It has also racked up a $14.2 million loss in 2017.
Luxury handbag retailer, Oroton (pictured), has collapsed into voluntary administration after failing to find a buyer
The 79-year-old Australian company announced on Thursday morning that it was unable to find a viable option for recapitalising or selling the business (stock image)
The 79-year-old Australian company announced on Thursday morning that it was unable to find a viable option for recapitalising or selling the business following a eight-month strategic review (pictured: Rose Byrne and Ksenija Lukich wearing Oroton)
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 will continue to trade as usual, while administrators Deloitte Restructuring Services pursue a sale or a recapitalisation, the company said.
In recent years, the company has suffered falling sales and racked up a $14.2 million loss in 2017 (stock image)
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 fallen from $7.80 in early 2013 to $2.44 a year ago.
On Monday, they closed at just 43 cents.
Speaking in a statement to the ASX, interim chief executive, Ross Lane, explained that there was no other solution to the problem (stock image)
‘The board is disappointed that it has had to take this step after running such a comprehensive process,’ Mr Lane explained (stock image)
‘The board is disappointed that it has had to take this step after running such a comprehensive process,’ Mr Lane continued in his statement.
‘However… it is apparent that voluntary administration is necessary to protect the Oroton business and the future of this iconic Australian brand.’
The brand made a $3.4 million profit the previous year.
The group’s shares have been suspended.
Oroton joins a string of other Australian fashion retailers in collapsing in the past 18 months.
It currently has 62 stores and 12 concessions across Australia, New Zealand and Malaysia, employing 550 full-time, part-time and casual staff.