UPDATE: The parent company of two womenswear chains has provided further details on its businesses in administration.
Universal Retail Brands, the operator of the Events women's fashion label, has revealed that the Queenspark business will not be impacted by the voluntary administration of Events and Queenspark Australia.
Contrary to information received earlier today by ragtrader.com.au from a company spokesperson, Universal Retail Brands has clarified that while Queenspark Australia has been placed into voluntary administration, the Queenspark trading business will not be affected.
The company has also indicated that Queenspark Australia is “not a trading entity and only holds certain property leases”.
It has also been confirmed that the 55 remaining Events stores will be continue to operate under licence from the VA by Queenspark business which is not impacted by VA.
In addition the company confirmed that, contrary to information provided to ragtrader.com.au this morning by its spokesperson, the group operated exactly 78 stores prior to the administration.
“This has been an extremely difficult time for fashion retailers in the Australian market with retailers grappling with the challenges on online stores and global consumers. Whilst our online businesses have continued to grow sales at some of our retail sites have declined and thus earmarked them for closure,” a company spokesperson said.
“The decision to close 25 unprofitable stores across our network will help create a sustainable business going forward, the voluntary administration was an essential step to give us the time necessary to agree the restructure and store closure programme with our landlords.
“Unfortunately we’ve had to make some staff redundant however we have sought to relocate staff to continuing stores to minimise staff redundancies”.
Universal Retail Brands acquired the Events retail business in 2011.
Events reported sales of $20 million in 2012, and at the time employed 250 staff across 38 locations.
Two womenswear chains with over 70 stores and 400 staff between them have been placed into administration.
The parent company of Events and Queenspark has confirmed that the sister brands have been placed into voluntary administration, with business insolvency firm BRI Ferrier appointed to oversee the restructure.
A spokesperson for both fashion chains today revealed exclusively to ragtrader.com.au that the restructure has seen 25 under-performing stores closed to date, across all states.
Ten to 15 staff will be made redundant, with all other staff relocated to remaining stores.
Currently, 55 stores across the Events and Queenspark chains continue to operate, employing approximately 400 staff.
The spokesperson also said that gift vouchers for both brands will continue to be honoured by existing stores and “creditors and customers will be provided with updates as the restructure continues”.
Despite the tumble into administration due to the tough trading environment, the parent company of both brands also revealed that online sales for both brands have continued to show positive growth.