Jeanswest has found a buyer, after it went into voluntary administration amid Australia's retail apocalypse
Jeanswest has a buyer after it went into voluntary administration in January.
Harbour Guidance Pty Ltd, the Australian subsidiary of Hong Kong-based Harbour Guide Ltd, has signed a sale contract for the clothes retailer.
The sale will include up to 106 of the currently operated 146 stores, with 680 of 980 staff set to keep their jobs.
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Jeanswest has found a buyer following its collapse into voluntary administration last month.
In a statement, administrators from KPMG announced Harbour Guidance Pty Ltd, the Australian subsidiary of Hong Kong-based Harbour Guide Ltd had signed a sale contract for the flagging clothing retailer, which in January fell victim to woeful Australian retail sales.
The sale will include up to 106 stores of the 146 currently operating. KPMG administrators Peter Gothard and James Stewart say 680 Jeanswest employees will keep their jobs, of the 980 which were at risk.
“The acquisition of Jeanswest business will present an opportunity to rejuvenate this iconic brand well known to the Australian community," said George Yeung, managing director of Harbour Guidance.
“We are committed to continue servicing Australian communities and [to] grow the Jeanswest brand organically through an omnichannel service offering."
It's worth noting Jeanswest has been owned by a procession of Hong Kong companies over the past few decades. It was bought from its Australian founders by Hong Kong company Glorious Sun in 1994, before being palmed off to Howsea Ltd in 2017. Harbour Guide, the new owner, is owned by Chun Fan Yeung, who is also a minority shareholder in Howsea.
When Jeanswest initially went into administration in January, Stewart pointed to the challenging conditions for Australian retailers as the key reason for the brand's troubles, alongside "pressure from online retailers".
The sale is expected to be completed by mid-March.
