Former employees of Australian Fashion Labels are set to be re-hired under new owners International Fashion Group (IFG).
As reported by Ragtrader yesterday, the Australian Fashion Labels assets – including the Shanghai and Singapore operations and team – were purchased by IFG, which has now been revealed is a consortium of Australian private investors.
Speaking on behalf of the consortium, investor Andrew Nunn said a focus for the Group is to go forward with the backing of former employees.
"It is our absolute focus to bring back the talent that sadly had to be made redundant through the administration process.
"This team knows the business intimately and understands our loyal customer base and we are thrilled to be given an opportunity to help shape the future of Australian Fashion labels with such a talented group.
“We are also pleased to announce that work has already commenced to re-hire the creative team, some of whom are already back to work," he said.
IFG has also appointed Venture Corporate Advisory director Sean Ebert to assume the role of interim CEO of the business.
"Sean brings extensive experience in successfully leading business growth after holding the position of global M&A director for an international firm," Nunn added.
"Sean will be tasked with working through the process of re-hiring other members of the previous team and recruiting new talent required to continue to build the vision of Australian Fashion Labels – to provide a hub to support Australian designers to reach their markets.
"We have secured key fashion industry advisors and we are establishing a board of directors to form the collective skills set we need to set this business up for success," he said.
Such advisors include Australian Fashion Labels founders Melanie and Dean Flintoff who said they're pleased to see the business continue, after suffering under the strain of COVID.
"We are pleased that our vision will continue with new business owners who are based in South Australia and are passionate about retaining our talented team.
"The global impacts of COVID-19 across the fashion industry were and continue to be immense and we are thankful that Australian Fashion Labels has received a lifeline," they said.
As reported by Ragtrader, the business entered administration with approximately $12 million in debt.
These debts have not been passed onto the new owners.
Meanwhile, IFG said it will continue Australian Fashion Label's legacy of supporting emerging Australian talent, Nunn added.
"We want to continue to support local TAFE fashion graduates, many of whom have found employment with Australian Fashion Labels in the past.
"Collectively, we see our investment as an opportunity to build on something innovative for the national fashion industry.
"We recognise the talent that is embedded in the company’s history as well as its impressive track record of exporting Australian designs into over 100 countries across the globe," he said.
According to IFG, it is also set to explore expansion opportunities into larger eCommerce platforms and more sustainable fashion solutions.
In the meantime, the business is encouraging its loyal customers to support it through the transition period by purchasing from labels Cameo Collective, Finders Keepers, The Fifth Label, Keepsake the Label and BNKR online.
The investors are honouring valid outstanding store credit for a period of six months (from March 02) to encourage customers to purchase.
The business is also planning on holding a major global sales event next week, as well as launching new season stock soon.
"We would like to thank our customer base for their ongoing support and patience and we look forward to working with the global teams, distributors, customers and partners," IFG said.