National insolvency specialist Jirsch Sutherland has been appointed to handle the voluntary administration of Melbourne-based Australian fashion label and boutique retailer, Zachary the Label.
The established brand was placed into Voluntary Administration on February 26.
According to Jirsch Sutherland Melbourne managing partner Glenn Crisp, this was as a result of rapid expansion, in addition to restricted funds required to continue the operation of the business, produce stock and market the label.
Crisp and Jirsch Sutherland Melbourne principal Liam Bellamy are currently assessing the business, meeting with creditors and managing the closure of the unprofitable stores in preparation of selling Zachary the Label as a going concern.
“Despite the brand’s current issues, this administration presents an opportunity to purchase a known fashion brand in addition to an established online store and social media presence,” Crisp said.
Zachary the Label is just one of a number of established Australian fashion brands that has gone into administration or closed outlets over the past year as a result of a range of pressures.
“As the online retail marketplace expands and traditional geographical barriers to entry are removed, Australian retailers are dealing with more competition than ever before,” Crisp added.
Zachary the Label bolsters sales from its five retail outlets with an online shop and a ‘shop insta’ on its Instagram account, which enables customers in Australia, New Zealand, the US and UK to place orders.
Also strengthening brand loyalty and awareness is the label’s 208,000 Instagram followers and past support from international celebrities including the Kardashians and local fashion influencers.
The first creditors’ meeting will be held March 7.