Colette, The Daily Edited restructure saves 400 jobs nationwide

Colette, The Daily Edited restructure saves 400 jobs nationwide

Two months after being tasked with the voluntary administration of fashion accessory brands Colette and The Daily Edited, insolvency firm Mackay Goodwin has announced a successful restructuring of both chains will allow them to continue operating, collectively saving more than 400 jobs.

The brands' owner Marquee Retail Group (MRG) fell into voluntary administration following a downturn in sales that persisted from October last year to March this year, pinning the blame on rising inflation and higher interest rates.

Despite the troubling sales period, the execution of a Deed of Company Arrangement (DOCA) has secured the future of the business, allowing it to continue trading with stores across Australia remaining open.

The DOCA was completed in two months and saved more than 400 jobs in the process. Domenic Calabretta, Mitchell Ball and Richard Lawrence were appointed as voluntary administrators to oversee the company’s business affairs.

“The new company will have 40 stores under the Colette by Colette Hayman brand, along with its online site. It will also maintain the online business for The Daily Edited (tde.),” MRG chairman Bernie Brookes said.

“There were fewer than 10 redundancies. Mackay Goodwin evaluated alternatives for the business, including offers to purchase it (or parts of the business), however, the best outcome for creditors and staff was to accept the DOCA.”

“The entire MRG team showed remarkable resilience during this difficult period, and their efforts, along with the patience of suppliers and landlords are greatly appreciated.”

A spokesperson for the law firm confirmed with Business News Australia that 22 unprofitable stores were closed as part of the restructure with the majority of employees being relocated to other stores, resulting in less than 10 redundancies overall. 

This is the second time in four years that administrations were appointed to Sydney-based Colette - an affordable handbag, jewellery and fashion accessories business that at one time boasted 105 stores in Australia and New Zealand.

MRG acquired the business at the end of 2020 after it fell into administration earlier that year. In 2022, it also added The Daily Edited – or commonly known as ‘tde.’ to its fashion portfolio. The brand specialises in monogrammed lifestyle leather accessories, as well as stationery and desk accessories, bags, pouches, wallets and more.

Mackay Goodwin CEO Domenic Calabretta said this is a fantastic result that will enable an iconic business to keep its doors open.

"The team at Mackay Goodwin worked seamlessly with the team from MRG to make this happen, including many late nights, weekend work, and bi-lingual negotiations with overseas Chinese suppliers,” he said. 

"The achievement not only underscores the dedication of the Mackay Goodwin team but also exemplifies the firm's unwavering support for Australian businesses during challenging times. It reflects Mackay Goodwin's commitment to standing with Australian businesses in the moments that matter."  

The spokesperson also confirmed that with the DOCA secured, the business is not pursuing a sale and there are no planned changes to the leadership.

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