NATIONAL: The writing on the wall was long apparent to Ed Hardy Australia clients in the lead up to its voluntary administration, it has been revealed.
Ragtrader’s website www.ragtrader.com.au was the first to report on the appointment of administrators to the company, after notices were filed with the Australian Securities and Investments Commission on August 10.
However, delayed deliveries, a drop in quality and a series of structural changes to the Australian arm of Ed Hardy were some of the early warning signals told to Ragtrader by stockists.
Adelaide-based boutique Wild Child accepted its last drop of product two months ago after noticing a decline in quality. Manager Niki Carapella said tension was compounded by the brand’s decision to open its own branded store in the city, effectively positioning itself as a direct competitor.
The Adelaide store was among four Ed Hardy sites closed by administrators Simon Wallace-Smith and Tim Norman upon their appointment to the company. These also included concept stores in Paddington (NSW), Pacific Fair (Qld) and Brisbane (Qld), with just six stores flagged to trade through the administration.
Meanwhile stockist Urban Equipment, which operates eight stores across NSW, was among several retailers to note recent delays in stock deliveries. A representative at the chain’s Hurstville store told Ragtrader the last drop was received six weeks ago, with no update on whether a scheduled delivery closer to spring/summer will come through.
“The company only started indenting last year – we’ve put in for two orders this year and we received everything for the last one but it was late, later than normal for deliveries.”
There were also concerns surrounding a series of structural changes to the company this year. The streetwear label dropped price points across its entire portfolio in June, reducing hoodies from $259 to $209, footwear from $139 to $109 and caps from $129 to $89.
Ed Hardy marketing manager Nicole Condos denied the move was based on tough retail conditions and claimed it was increased buying power from its growing retail network.
“We’ve also been able to pass on ... the benefits of import duties coming down,” she told Ragtrader at the time. “The duties have come down from 17 to 10 per cent on some of the items we import from the US.”
Australian chief executive Gary Berman similarly denied claims a decision to pull all stores located in Westfield last month was the result of financial woes. The company relocated all stores positioned in Westfield shopping centres, stating they were “simply not well suited” to the format.
Assia Benmedjdoub