Colorado Group looks set to close a third of its stores across all five of its brands under a proposal tabled by its receivers today (June 14).
Ferrier Hodgson has proposed a “major restructure” that would see 140 store closures across Australia and New Zealand, slicing Colorado Group's store count from 421 to 281.
The Colorado brand will all but disappear from the retail landscape with 109 proposed store closures, while the Williams store network will shrink by 21 stores, Mathers by seven, Jag by two and Diana Ferrari by one.
Exactly 1042 staff will lose their jobs, including 30 staff at Colorado Group's head office.
Ferrier Hodgson partner Brendan Richards said no further store closures were anticipated.
“The restructure of the group would eliminate the loss-making Colorado-branded stores and those other stores impacting on the profitability of the group. The remaining brands and stores are all profitable and would form the cornerstone of the business,” Richards said.
Colorado Group is expected to deliver pre-tax earnings for 2010/11 of $19 million.
The company went into voluntary administration in March 2011 and has been seeking buyers for its five fashion brands since. Ferrier Hodgson said the sale of Colorado's brands was unlikely to be finalised before the end of June 2011.