The first meeting of creditors for collapsed womenswear chain Brown Sugar will be held this Friday, following the appointment of administrators late last week.
Established in 1975, the fast fashion chain operates 40 stores across Victoria, New South Wales, South Australia, Tasmania and Western Australia. The company employs 50 full time staff and 170 part time and casual employees.
Administrators Sal Algeri and Tim Norman of Deloitte's Corporate Reorganisation Group will head the meeting, and are continuing to trade the company as a going concern.
Algeri said the stores have commenced stock clearance sales as the administrators assess its financial position and seek expressions of interest to purchase the company.
Brown Sugar has undergone successive management changes since 2009 and has been stung further by adverse trading conditions and falling consumer sentiment.
BROWN SUGAR: Currently under voluntary administration.
