Do you remember Myer CEO John King announcing his retirement on Monday morning? I wouldn’t be surprised if you didn't. So much has happened in the Australian fashion industry since Monday that we’re now two days ahead on our usual five-stories-a-day schedule.
Apart from Myer, much of the fashion business news in Australia this week was dominated by five industry players: Best & Less Group, The Iconic, Australian Fashion Council, Brand Collective and the Reserve Bank of Australia.
As John King stepped out of the office for lunch, Best & Less Group (BLG) officially announced that the company is now in new hands. This came a month after BB Retail Capital (BBRC), under leadership by Brett Blundy and Ray Itaoui, formally launched a takeover proposal of the low-price fashion retailer.
BLG’s now-former major shareholders, Allegro and Bignor - which both owned 40.7% of BLG shares together - accepted the proposal to buy them out. By then, BBRC owned around 57.15% of the total shares of BLG, with its other shareholders now currently deciding whether they should sell or hold on.
Then, as of 6:31 pm that day, Jason Murray and Fay Bou, being the BLG directors associated with Bignor and Allegro respectively, resigned. Murray also resigned from his role as executive chair of BLG. In the same swoop, BLG board of directors appointed Itaoui as director of BLG and executive chair, and he is now assuming the role of CEO until The Iconic’s Erica Berchtold joins in September 2023.
And that’s just day one…
On Tuesday, as the industry came to grips with the BLG takeover, Brand Collective’s Eric Morris stepped down from the CEO throne after being in the role for just over a year. Long-running fashion leader David Thomas jumped into Morris’ seat, with no time for it to cool down.
Thomas has held leading roles at Country Road Group, David Jones and more recently Brandbank Group.
Morris, however, is not leaving the company, as he now settles into a new formal board and advisory role within the Brand Collective business.
And just when you thought it was safe to feel calm, the Reserve Bank of Australia (RBA) lifted the cash rate target by another 25 basis points to 4.10 per cent. This comes days after the Fair Work Commission raised the minimum wage last week, with that coming into effect on July 1.
It needn’t be said, but the industry was not happy.
“The implications of a twelfth interest rate rise and a significant award wage increase will hit retailers hard,” Griffith says. “In just a few months the sector has been hit with a wage and superannuation guarantee increase, staffing and resourcing issues, high inflation and cost of living causing flatlining consumer confidence and spending.
“The cost of doing business is already unfeasible, and the decision to increase rates for the twelfth consecutive time could force many retailers to shut down.”
By Tuesday evening, most of us were seeking out self-care routines to come to grips with what was already looking like a hectic week.
Then Wednesday hit, and one budding reporter (me) woke up extra early for a landmark announcement by the Australian Fashion Council (AFC). The good news was, the main story here was already written and ready to go live. Australian fashion was being offered a gift that is expected to drive us towards a circular fashion economy by 2030.
But then, Federal Minister Tanya Plibersek made a striking ultimatum to the fashion industry:
“We have a choice here,” Plibersek says. “This can be an industry-led approach. You collect the money, you decide how the money is best used, you invest in the research you need, you invest in the collection systems you need, you take charge… or I'll do it.
“I've been really clear that this is too big an environmental problem to turn our backs on. I want to see industry leadership. I don't want to be making these decisions for you. But if I don't see enough movement in a year, then I will regulate.”
And so, I raced back to the office piecing together this breaking story. But as I sat at my desk at 9:07 am, The Iconic announced Jere Calmes as the successor to Erica Berchtold when she leaves for BLG in September.
The Iconic’s parent company Global Fashion Group (GFG) noted that this is a return for Calmes, after a three-year tenure as chief of Lamoda, which GFG sold in late 2022.
By lunchtime, Louis Vuitton chose Australia in a limited global rollout of a new digital collectible. And by mid-afternoon, global footwear brand ASICS announced a six-year sponsorship deal with Sydney Marathon.
Thursday morning acted as a catch-up on the week so far as the breaking news cycle died down. But, as I write this on Thursday afternoon, I still wait with bated breath for the next big announcement.