Womenswear label Proud Poppy will return to founder Tara McKeon after creditors voted to hand back control, a month on from its collapse into voluntary administration.
The vote, taken this week, approved a Deed of Company Arrangement (Doca) allowing McKeon to continue owning and operating the label. Kathleen Vouris, Richard Albarran and Marcus Watters of Hall Chadwick were appointed administrators on August 5, with a first meeting of creditors held on August 17.
McKeon founded Proud Poppy in 2019 after a career in nursing, building the brand around inclusive sizing that runs from six to 30. It grew to seven standalone stores and was reported late last year to be turning over about $20 million with a team of roughly 70.
That footprint was cut back sharply in the lead-up to the administration, with three regional stores closed and the product range trimmed. Debts of about $8.5 million have been revealed since the collapse.
McKeon has described the outcome as a new era for Proud Poppy, singling out staff and suppliers for the support shown through the process. She pointed to hard conditions for small business in Australia while stressing that voluntary administration need not be an end point.
Proud Poppy will keep trading online and through its three remaining stores in Doreen in Victoria and Gympie and Toowoomba in Queensland.