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A buyer has been found for fashion retailer Jeanswest to save the chain from total collapse.
Harbour Guidance, the Australian subsidiary of Hong Kong-based company Harbour Guide, will acquire Jeanswest for an undisclosed sum.
Harbour Guide is owned by Mr Chun Fan Yeung who is a minority shareholder Jeanswest's previous parent Howsea.
The sale is expected to be completed in mid-March 2020, and will include up to 106 stores and preserve the jobs of up to 680 employees.
"The acquisition of Jeanswest business will present an opportunity to rejuvenate this iconic brand well known to the Australian community," says managing director of Harbour Guidance George Yeung.
"We are committed to continue servicing Australian communities and grow the Jeanswest brand organically through an omnichannel service offering."
Jeanswest fell into voluntary administration in January 2020, 48 years after first opening its doors in Perth.
Known for its quality denim goods and wardrobe staples, the retailer employed 988 people around the country at the time it appointed KPMG as voluntary administrators.
Administrators were forced to close 37 stores, or one quarter of its total footprint, just over a week after KPMG was appointed.
The closures resulted in 263 employees to be made redundant as part of the restructure as Jeanswest began to field purchase offers.
Jeanswest's administration was the latest in a string of retailer collapses as the Australian sector suffers from what has been dubbed the 'Retail Apocalypse'.
In late November women's fashion retailer Bardot appointed KPMG to manage its voluntary administration.
Bardot announced in early January that it will close 56 stores across the country in order to remain in business resulting in more than 500 employees losing their jobs.
Department store chain Harris Scarfe similarly fell into receivership in December despite its strong customer satisfaction track record and annual sales of $380 million.
The company announced in early January that it would close 21 stores this month, meaning around 88-full time, 128-part time, and 224 casual positions would be impacted.
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Business News Australia
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