- Wittner has collapsed
- It appointed administrators on Wednesday
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Wittner - one of Australia's leading footwear brands - has gone bust after more than 100 years in business.
The iconic women's shoe company, established in 1912, has over 20 branded stores in Australia and New Zealand, and 25 stores within David Jones and Myer.
It also trades on its own website and The Iconic.
Insolvency experts Sal Algeri and David Orr from Deloitte were appointed joint administrators on Wednesday, the Australian Financial Review reported.
Mr Algeri said the company will continue to trade as normal as they 'conduct an urgent review of the group's finances'.
'We understand the appointment of administrators will be particularly concerning to Wittner’s employees, as well the very loyal customer base it has built over decades,' he said.
'Please be assured that trade will continue on a business-as-usual basis as we conduct an urgent review of the group’s finances and seek expressions of interest from parties interested in the sale or recapitalisation of this iconic Australian brand.'
A statement from Wittner said sales growth in the past 12 months couldn't keep up with rising wages and rental costs.
Wittner - one of Australia's leading footwear brands - has gone bust
Insolvency experts Sal Algeri and David Orr from Deloitte have been appointed joint administrators of Wittner
'The growth in sales has been eroded by cost pressures from rising wages and occupancy costs, and more recently challenging trading conditions and supply-chain disruptions,' management said.
'We have invested in our range and teams over the last twelve months and remain committed to the Wittner business.
'We will work closely with the administrators to achieve the best outcome for the business and its stakeholders.'
The news follows an announcement that all 87 Jeanswest stores across Australia will close their doors in the next six weeks.
The Aussie fashion giant announced last month that up to 90 stores would close and up to 600 jobs would be axed after its parent company Harbour Guidance collapsed.
Last month, administrator Lindsay Bainbridge said the news of the closure of stores and job losses was 'a hard day' for staff.
'The owners have done everything they can to keep Jeanswest going, but market conditions mean sustaining bricks-and-mortar stores is not viable and unlikely to improve,' he said.
'They deeply regret the impact of store closures on their team members and their customers, and we will be working now with teams across the country.
Wittner will trade as normal as they 'conduct an urgent review of the group's finances'
Shoppers will only have weeks to visit Jeanswest after it announced it would close their doors
'This is a hard day for hundreds of Jeanswest team members and we will be working directly with the team members to provide clarity and information about the next steps.'
The administrators previously said they'd identified a related party debt of about $40million.
Administrators put the company's failure down to an 'unsustainable business model'.
The stores have cut prices on all stock in a bid to partially repay its creditors.
Last week, administrators revealed more than 53,000 pairs of jeans had been sold in the first week of a nationwide discounting campaign.
Administrators are looking to shift more than $20million worth of stock.
Jeanswest had been operating across Australia for more than 50 years, after opening its first store in Perth in 1972.
In 2017, the owner of Jeanswest claimed Australians were forking out their money for 'lifestyle spending' on travel and televisions, rather than buying new clothes.
He said this led to 'lethargic' and 'slothful' retail habits.
The brand has three stores in New Zealand, which are not part of the administration process and will remain open for business.
