EXCLUSIVE: The parent company of Rodney Clark and Gordon Smith has gone bust.

Gordon Smith Marketing (GSM) entered into administration on June 27, appointing AS Advisory administrator Andrew Schwarz.

In a circular to suppliers, Schwarz said GSM had entered into a sale of business contract prior to his appointment.

Purchaser Brands For Us intends to continue trading the companies' businesses and assets including staff, retail outets and summer orders.

"Following my appointment, I have entered into a licensing arrangement with the purchaser to license the business to them pending settlement of the sale contract," the circular reads.

"Accordingly, the businesses continue to operate under the control of the purchaser and subject to the licensing arrangements I have entered into with the purchaser."

Despite no existing contracts with the new purchaser, suppliers claimed they are being urged to ship summer ranges to the company.

In his letter, Schwarz noted suppliers should contact Brands For Us directly to discuss ongoing supply and the establishment of new supply accounts.

"As I am not trading the Companies I do not accept liability for any services or supplies."

Gordon Smith Marketing is an iconic Australian fashion house, first established in Sydney in 1992.

comments powered by Disqus