Iconic Australian denim label Ksubi and surfwear brand Insight are fighting for survival, with parent company Bleach announcing a restructure to put the brands back in black.
Sydney-based Bleach has announced a recapitalisation and restructuring plan after falling into rough waters.
The company that previously housed Bleach and its labels has been placed into voluntary administration.
It is understood the move was made necessary primarily because of the closure of Bleach Group’s major Asia-based supply chain/sourcing factory in May 2013.
Under the restructuring plan Bleach Group, including the Ksubi, Insight and Something Else labels, and all of its 80 employees have been brought into new corporate ownership, following a share placement by a US private equity group.
Bleach Group CEO Mark Byers said supply of Ksubi and Insight product will resume this month after a short delay, with new sourcing arrangements secured.
“The restructure was necessary to ensure the future of the Ksubi and Insight brands and more than 100 jobs globally and we can now look forward with confidence.
"The need for a voluntary administration, which we attribute mainly to China supply chain problems, is regrettable.
"However, the outcome is a positive one for the Ksubi and Insight brands, our domestic and international employees, contractors and sub-contractors, retail and wholesale distribution partners, and the wider Australian fashion industry.
“With growing competition from international labels and online sales, and rising sourcing costs in Asia, it has been a difficult time for the fashion industry.
"Despite this, our brands had been performing well until the supply disruption.
"Both Ksubi and Insight are sought-after in the youth markets in Australia, Europe and the US - losing them would have been a blow to the Australian industry, and meant the loss of many direct and indirect jobs in Australia and overseas,” he said.
Established in 2002, Bleach Group and its subsidiaries, designs, produces, and distributes fashion apparel and accessories in Australia, Europe, Asian and the US market.