Fashion retailer Ojay, which has three Perth outlets, has gone into administration with store closures and job losses predicted.
Lowe Lippmann accountancy firm partners David Coyne and Gideon Rathner were both appointed joint administrators on Friday.
"I can confirm I was appointed joint administrator on Friday 31st August," Mr Coyne said today.
He would not comment further.
The Melbourne-based fashion chain, which has been operating since 1976, has 19 stores in Victoria, NSW, Queensland and three in Perth, in the Hay Street Mall, Lakeside Joondalup and a clearance store at Harbour Town.
Australian Retailers Association president Russell Zimmerman said he hopes the administrators will be able to save the women's clothing store.
"One would have to assume there will some store closures and staff losses," he said.
"One is not overly surprised Ojay has gone (under) purely because the sector is under pressure."
Australian retail spending fell 0.8 per cent in July, according to data released by the Australian Bureau of Statistics on Monday.
Prime Minister Julia Gilllard brushed off suggestions this latest corporate collapse pointed to a weakening economy.
“Certainly not,” she told reporters in Perth.
“Our economy is a world beater, the envy of the world.
“We’ve got strong growth now, low inflation, low interest rates, low unemployment compared with other nations around the world.”
Financially speaking, there was no nation Australia would want to swap places with, she said.
“We came out of the global financial crisis strong - that’s something we should all be proud of.
“And we are taking the right steps now to ensure our economy is strong for the future.”
Mr Zimmerman said rising tenancy rents and weekend penalty rates had put pressure on retailers.