An administrator has been appointed to fashion brands David Lawrence and Marcs amid deteriorating sales in Australia and New Zealand.
Administrator Rodgers Reidy's director Geoffrey Reidy said the two brands would continue to trade while his team reviews their operations ahead of a planned sale of the businesses.
"We intend to review the operations of the businesses and continue to trade while we market the businesses for sale," Mr Reidy said.
The sole director of the companies operating the labels, Malcolm Webster, said it was necessary to appoint administrators because of deteriorating sales, market conditions and poor cash flow.
The companies operate the labels Marcs and David Lawrence across 52 stand alone stores, 11 outlets and over 140 concession stores operating out of Australia and New Zealand.
In Australia, the companies employ approximately 1,130 staff; 640 staff are employed on a casual basis, and approximately 260 staff are employed on a full-time basis and 230 on a part-time basis. There are 10 stores in New Zealand employing 42 staff.
In a statement, the administrators said:
- employee wages have been paid up until 30 January 2017.
- superannuation has been paid up until 31 December 2016
- all existing gift cards and returns will be handled in accordance with the companies' existing policies.
AAP