Barkins blues: chain in troubled waters

 

Condura, Kayser Hoisery, Pacific Brands Distribution, Sass Design and Pretty Girl Fashion Group are among a group of trade creditors affected by the collapse of a prominent womenswear retailer.

BEM Corporation, which trades as fast fashion chain Barkins, owed $12.2 million to unsecured creditors when it collapsed into voluntary administration late last year. The company continued to trade from 31 stores and employed 360 staff when insolvency firm Setter Shepard was appointed to the company.

At the time of press, the firm had shut four Barkins stores and retrenched 22 staff. A report to creditors revealed an ongoing review into the viability of all stores and operations by administrators.

Trade creditors based in NSW were the worst affected by BEM’s collapse, with an official creditors list revealing Sportlook ($1.5 million), New Black ($1.2 million), Longbeach Apparel ($618, 806) and Bassoni International ($577, 217) as among the hardest hit.
Melbourne’s P.SS Clothing ($987, 825), CK Clothing ($110, 816), Jimmi Dexta ($161, 415) and Sass Design Group ($135, 218) were also owed substantial sums.

BEM was advertised for sale following the appointment of administrators, with over 20 expressions of interest. While nine parties completed confidentiality deeds, there were no offers at the time of press.

Assia Benmedjdoub

For Fraser McEwing’s exclusive take on the $23 million web surrounding this administration, turn to page 12.