The owner behind teen clothing brand Pavement says he is determined the fashion chain won’t be another casualty of COVID-19.
Stephen Meurs, who also co-founded Smiggle, believes the right investor could build market share and expansion opportunities.
Pavement entered voluntary administration this week, with Pitcher Partners Andrew Yeo and Gess Rambaldi appointed as administrators.
It has 26 stores nationally and an online store.
Meurs, who saw Smiggle join Solomon Lew's Just Group, says Pavement captures a market of pre and early-teens not catered for by other brands.
“We get customers who are totally obsessed with the brand, who send their mothers and grandmothers in with the instruction that they can buy anything at all from the store and they know they will love it,” Meurs said.
“We have learned a lot over the past 12 years about getting the pitch right, so that you are fashion forward while still being age appropriate – and finding the right balance with extended sizing as well.”
Before the pandemic downturn, the business had reinvested in its product lines in February, recognising that some clothes and accessories were perennial favourites that could be updated each season.
The brand was looking to build the repeatable lines to up to 40% of the range, Meurs said, as well as explore online sales for the US where there was a gap for middle schoolers.
“The timing of the pandemic was just what we didn’t need but we think there’s room for an investor to take the right steps to build on the work that’s already been done,” he said.
“When we get out of this, the marketplace will have fewer players and our customer will still want what she wants — we know her well, we understand her needs. We also know our staff back the brand and they are revved up, knowing that this market has a lot of untapped potential.”
Administrator Andrew Yeo said the business would continue to trade and sales in states that had moved past lockdown were optimistic.
“As a brand Pavement will be well-known to many parents but, as with so many other retailers, 2020 has been a very difficult year,” Yeo said.
“We will be keeping the business trading while we undertake a review and will be considering offers for sale.”
The first creditors meeting is scheduled for July 3.