The parent company of Jeanswest is intending to table a Deed of Company Arrangement (DOCA) for the collapsed retailer following the current sell-off of all inventory.
A DOCA is an agreement between a company and its creditors, outlining how the company's financial matters will be managed ahead. This is essentially a way for a company to restructure its debts and continue operating.
Harbour Guidance Pty Ltd – the parent company of Jeanswest – fell into voluntary administration in late March this year, appointing administrators Lindsay Bainbridge, David Vasudevan and Andrew Yeo of Pitcher Partners Melbourne.
Recent filings reportedly show that Harbour Guidance had $13 million in assets to cover around $53 million of debts when it collapsed. Of the debts, $4.1 million is owed to 600 staff, with administrators confirming that all staff salaries and superannuation have been paid to date, with other entitlements expected to be considered once the next creditors' meeting takes place.
It is expected that all leave and other entitlements will be paid in full.
Following the collapse, administrators launched a discounting campaign alongside inventory specialists Gordon Brothers to sell more than 360,000 items valued at $20 million altogether. In the first week of the campaign, 53,000 pairs of jeans were sold.
According to administrators, more than 175,000 people visited Jeanswest’s 87 stores around Australia in the past six weeks.
Following the discounting campaign, administrators are planning to shut down the entire fleet of Australian stores.
There are discounts of up to 50 per cent off all items store-wide. The administrators added that stock is being replenished from existing inventory and new season stock is arriving daily. Everything is expected to sell out and must be cleared by the time the stores have closed.
It is anticipated that the in-store sales will be completed on or around May 20, 2025.
Due to the ongoing sale, an extension of the convening period ahead of the second creditors’ meeting has been granted to June 30, 2025.
Jeanswest GM Anne Natale shared gratitude and appreciation for the team’s dedication and commitment during the administration process.
“Our team is made up of passionate people who love our brand and their customers, and because of this are committed to staying on and supporting their teammates through until closure,” Natale said.
“Our stores in regional Australia in particular are part of communities where they have built relationships over the years, and as you can imagine this is a tough time for not only the team but also the loyal customers.
"We are supporting our teams as much as possible, as we realise the impact it has on them and their families during this transition.
"We have team members that have been with us for more than 30 years, and for some of whom this was their first job, which is incredible longevity.
“I can highly recommend anyone who has been part of our Jeanswest family as they are some of the most dedicated people I have ever had the pleasure of working alongside."
Bainbridge also praised the support that Jeanswest employees have provided the administrators.
“Jeanswest staff have been tremendous in their commitment to staying on during the sales and working with our team,” he said.
“We are committed to supporting the employees during the administration process and keeping them informed.”