Post by Daniel
[quote]Post by SoHo
Not at all. I've even planned a trip to Melbourne just for shopping after Christmas!
Post Last Updated: 07.12.2008 at 04.00
Herringbone loses its shirt in crisis
UPMARKET suit and shirt retailer Herringbone has collapsed just days after industry bosses warned that smaller retailers were likely to fail as the economy continues to deteriorate.
Herringbone, founded 11 years ago by former merchant bankers John Mutton and Matt Jensen, was placed into voluntary administration on Sunday, The Australian reports.
Administrator Martin Green, of insolvency firm BRI Ferrier, blamed the global financial crisis and cuts in household retail spending for a 23 per cent fall in Herringbone's sales over the past two months compared with the same period last year.
Herringbone sells suits, business shirts, ties and knitwear at 13 shops throughout NSW, the ACT, Queensland and Victoria.
Starting life as a catalogue and internet business, Herringbone opened its first store at Sydney's Circular Quay in 1999 and quickly became a favourite among executives in the financial sector, where savage job cuts have reduced the need for many former customers to wear a suit at all.
Prior to the global financial crisis, it had also been planning to expand into Asian markets.
David Jones chief executive Mark McInnes said last week that menswear was typically the first area to suffer in a consumer downturn, while children's clothing and cosmetics tended to be more resilient.
Mr Green said he planned to operate the stores as usual while negotiating with potential buyers or parties who may be able to inject capital into the business.
"The administrator is in discussions with Herringbone's bankers, and is seeking their support to continue the business," BRI Ferrier said.
"Expressions of interest are being sought from interested parties either to purchase the Herringbone business as a going concern or to recapitalise the existing business."
The first meeting of Herringbone creditors is scheduled for December 17.
Create a Fashionising.com account to leave a comment or login.