Australian luxury retailer Cosette is set to close its local warehouse and operations.
Cosette executive director Don Grover confirmed the news on LinkedIn, calling it a difficult decision.
“We have never wavered from our mission of making luxury more affordable, every day – and we have proudly served more than 140,000 customers in our 11 years of operations, whom we are eternally grateful to. But the market has changed, and we can no longer continue as we had," Grover shared.
The news comes nearly two years after the Sydney-based retailer fielded over 1,000 claims that it had sold inauthentic luxury products. NSW Fair Trading eventually vindicated Cosette following an extensive investigation that found all the claims were false. Fair Trading assessed 1,079 consumer complaints and worked directly with overseas luxury brands, including Prada, Burberry and the Kering Group (YSL, Gucci and Balenciaga), to test the authenticity of Cosette's handbags and accessories.
Grover said that despite the vindication by Fair Trading, the damage had been done.
“These allegations did have a detrimental impact on the business, and Cosette is grateful to those customers who supported us through this trying time,” Grover said.
“One of our biggest regrets is that we were unable to convince all of our customers that we were truthful and that some of our customers were ultimately unhappy with their purchase. We encourage all consumers to be wary of third-party online authenticators, who have significant issues with accuracy and reliability (as stated by NSW Fair Trading)."
A spokesperson for NSW Fair Trading at the time said that, during its investigation, some luxury brands confirmed the authenticity of handbags that multiple online authenticators had advised customers were fake.
"The investigation highlights that there are significant issues with the accuracy and reliability of online authenticators, who use AI and algorithms to provide authentications," the spokesperson said. "Consumers should be aware of the limitations of using some online authenticators."
Grover added that this market shift and the wrap-up of the Cosette business will mean fewer options for Australian consumers.
As part of the closure, Cosette is running an Australian Warehouse Sale that will offer up to 80% off RRP on leading luxury labels such as Saint Laurent, Gucci, Prada and Celine.
Grover also pointed out that Cosette is not in administration or liquidation, with Ragtrader confirming this via the ASIC website.