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Australian fashion brand Metalicus has become the latest victim of the tough retail environment and has fallen into voluntary administration.
In an email sent to customers on Wednesday evening, the brand announced it has entered into voluntary administration and will be launching a nationwide sales campaign to get rid of stock.
The business, owned by General Pants Co., appointed administrator Petr Vrsecky from PKF last week.
The company's 12 retail stores and 15 Myer concessions are currently being wound down. The group will be liquidating stock over the next two months via significant discounts nationally.
The group thanked its customers for their loyalty to the brand over the years.
"Metalicus has long been recognised as an iconic Australian fashion brand and we would like to take this opportunity to thank our customers for their ongoing loyalty and support over the years," says the brand in an email to customers.
The company allegedly owes just under $2 million to a range of creditors and a significantly higher amount to General Pants, which is providing management style assistance to administrators.
General Pants bought the Metalicus brand from Pas Group in 2016.
The company has shut down its Facebook and Instagram pages since announcing the voluntary administration on Wednesday evening.
Metalicus is the second retail brand this week to buckle under the pressure of the difficult Australian retail market.
Last Thursday Esprit announced its plans to exit the Australian market, closing 67 outlets in the process.
Metalicus and Esprit are following in the footsteps of brands like Gap, Oroton, Marcs, David Lawrence and Pumpkin Patch who have all collapsed over the last two years.
Department stores like Myer have also been struggling in the current retail environment after investments in flagship brands went sour.
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Business News Australia
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