Australian sportswear maker Skins claims bankruptcy

By Alexis Carey for news.com.au

Another iconic Australian fashion brand is a victim of the struggling retail sector, sportswear maker Skins being on the verge of collapse.

The company filed for bankruptcy in a Swiss court. President Jaimie Fuller confirmed the news and revealed its ravages in a long public statement.

"An administrator will be appointed to badume the responsibility of the company with an almost immediate effect," Fuller wrote on the company's website last week.

"My management team and I have made every effort to avoid this, and I apologize to all those affected."

"I regret very much and I'm sad that it got there, even yesterday, it seemed like there was an option to avoid this action, but the events plotted against us and left us no option. "

Mr. Fuller explained that the brand would change ownership but would not "disappear" and that Skins customers would still be able to buy products.

The company was founded in 1996 by ski fan Brad Duffy, but was bought by Mr. Fuller in 2002.

He said that while there were "many contributing factors as well as mistakes I made along the way," one of the key enablers had been the GFC.

"What brought us to here really began 11 years ago." When the Global Financial Crisis (GFC) hit in 2008, I sold some of Skins to a private equity firm I also have a bad contract, "he said.

"When the GFC ended, I had to give up the private equity agreement.To do this, we borrowed a lot and, with the help of a Japanese partner, we managed to buy the private equity shareholders.

"To my great regret, these loans have become unsustainable and, while we have been working for some time now to try to avoid what is happening today, we have finally had no choice . "

This follows the announcement last week that Australian men's clothing retailer Ed Harry had entered voluntary administration.

In the short term, the South Australian-based company will immediately embark on an existing merchandise liquidation sale to maximize options for the company.

The KPMG Administrator stated that Ed Harry gift cards would be honored one month on a dollar-for-dollar basis only.

But these are just two of the dozens of Australian retailers that have recently bought stumps.

The largest women's clothing brand Maggie T has become the first major Australian retailer to enter the administration in 2018 after announcing its closure in early January.

Shortly after, Diana Ferrari, an Australian brand of footwear, apparel and accessories, revealed that at least four of its 17 stores would be renamed, the remaining ones being closed and six outlets remaining open.

The same month, Mountain Designs, an outdoor adventure equipment company, made the "tough decision" to close one in three stores in 2018.

The Joondalup, Wagga Wagga, Toowong and Dubbo stores closed on January 7, followed by branches in Cannington, Bendigo, Toowoomba and Wollongong on January 10, and others in Pacific Fair, Ashmore, Bunbury, Moorabbin and Warringah.

Then comes Gap, who quietly withdrew from the Australian market in early February.

The American fashion giant was brought to Australia by luxury goods retailer Oroton, which nearly avoided its own collapse at the end of last year.

Shortly after, the Avon cosmetics brand announced that she would leave Australia and New Zealand "by the end of 2018", leaving the company's 220 employees and more than 21 400 representatives face an uncertain future.

In early May, the Esprit fashion retailer announced that it would close its 67 Australian and New Zealand deficit stores, with the Hong Kong-listed company now focusing on more profitable regions.

Toys giant "R" Us finally closed down on August 5th, after having voluntarily enlisted in the administration in May.

In July, the directors revealed that all Toys' stores R & # 39; Us and Babies' R & # 39; The country would be closed and nearly 700 jobs would be lost.

The announcement followed the failure of Toys' R & # 39; Us in the United States in March.

Other big names that fell last year include Shoes of Prey, Max Brenner, Roger David and Laura Ashley.