Australian fashion brand Zachary the Label has reportedly gone into voluntary administration due to funding issues and increased competition both internationally and online. The melbourne-based brand joined the list of retailers that have gone into administration on Monday.
The news was reportedly confirmed by insolvency firm Jirsch Sutherland, which has been appointed as administrators. Its managing partner Glenn Crisp said that the move was a result of restricted funds needed to continue the businessā operation, promote the label and produce stock. He also cited market expansion.
Zachary the Label is the latest among known Australian fashion brands to go into administration over the past year due to a range of pressures, which included increased international competition. Online competition is growing, too.
āAs the online retail marketplace expands and traditional geographical barriers to entry are removed, Australian retailers are dealing with more competition than ever before,ā Power Retail quotes Crisp as saying.
The administrators are now assessing the business. They are also currently meeting with creditors and dealing with the closures of unprofitable stores. Crisp said that the administration presents a chance to…
