Colorado Group has entered voluntary administration after lenders rejected the Group's proposal to restructure and trade out of financial trouble.
The company behind brands including Diana Ferrari, Jag and Mathers said in a statement released today (March 30) it had “no alternative” but to appoint administrators after its two different proposals for a business restructure were refused by lenders last week.
“It remains the firm view of the board that this alternate course of action would have better served the interests of all the company's lenders, the business and its brands, the company's employees and external stakeholders including suppliers and landlords,” Colorado Group said.
The company currently operates over 430 stores across Australia and New Zealand and drew attention to the challenges currently plaguing the local retail industry.
“Like many retail sector companies, Colorado Group has been operating in a difficult retail environment for some time. The last few months, in particular, have been very challenging given the effects of a tough trading environment in Australia, especially over the Christmas period,” Colorado Group said.
The fate of the company's seven brands, hundreds of stores and thousands of employees currently remains unclear, however talk has been mounting that brands including Diana Ferrari will be sold off to willing buyers.
Colorado Group is owned by private equity firm Affinity Equity Partners (AEP) though the company's history dates back to 1864. Brands and retail chains currently within the Colorado Group portfolio include Colorado, Mathers, Williams the Shoemen, Jag, Diana Ferrari and Pairs Footwear Outlet.