Colette By Colette Hayman administrators have warned that uncertainty will destroy businesses.
Deloitte Restructuring Services partner Vaughan Strawbridge said retailers are struggling to navigate the current climate.
“These are extraordinary times, and there is also no certainty that many retail operators in Australia will be able to continue trading amidst so much uncertainty and with public health measures changing so frequently,” he said.
The move comes amid a shutdown of all Colette By Colette Hayman stores.
On February 20, administrators announced the closure of 33 stores across Australia and New Zealand as part of the process of preparing the business for sale.
Today, all stores would cease to trade until further notice.
“Until today, we have been able to effectively manage shopfront operations in what is a rapidly changing public health and trading environment.
“But the reality is that COVID-19 presents a health risk in a retail environment, and without being able to guarantee a safe environment for store employees, and with their health a priority, we have had to make this decision to cease trading across the 93 store network in Australia.”
The closures will affect approximately 210 permanent staff, plus casuals. Stores in in New Zealand have already closed as a result of government directives.
Employees are being stood down with access to certain leave entitlements and every support possible to ensure they can access relevant government support services.
Online sales and order deliveries are not affected.
“We hope to re-open the bricks and mortar business when this unprecedented public health threat has passed,but when that will be, we cannot be certain at this time.”