Colette by Colette to close down 33 stores

Handbag and accessories retailer Colette by Colette Hayman will shut down almost a quarter of its stores in Australia in New Zealand as part of a restructuring plan under its voluntary administration.

Deloitte Restructuring Services partners Vaughan Strawbridge, Sam Marsden and Jason Tracy have decided to close 33 stores over the course of the next three weeks.

The stores were chosen following a review of the Colette store network, taking into account a range of factors. Staff were told yesterday that despite these closures, 105 stores would remain in the portfolio to be offered for sale.

Strawbridge, one of the Administrators says all efforts are being made to redeploy affected staff, while reducing the store network will position the group for improved performance and time to find a recapitalisation or sale of business solution.

"This is never easy and we have regrettably had to make the decision to close 33 stores," he says.

"We are working closely with the Colette management team to effect the closures quickly while seeking to redeploy staff impacted.

"All staff impacted are expected to receive all their wages and entitlements in full."

Initial expressions of interest will be due early next week, with Strawbridge claiming strong interest has been gained so far.

Business News Australia