Australian designer womenswear brand, Zachary the Label, has been placed in voluntary administration.
Founded by Effie Kats in 2013, the fashion brand has five boutiques in Victoria and an online store. It is currently trading from one retail outlet while Glenn Crisp and Liam Bellamy of insolvency specialist Jirsch Sutherland review the business.
The pair has been appointed to handle the administration with the aim of selling Zachary the Label as a going concern. They are currently meeting with creditors and managing the closure of unprofitable stores in preparation to sell.
Zachary the Label has a turnover of approximately $2.2 million per annum and Crisp said the brand had struggled as a result of rapid expansion, in addition to restricted funds required to continue the operation of the business, produce stock and market the label.
https://www.instagram.com/p/BaqFCwTHHBa/?taken-by=zacharythelabel
Zachary the Label has five boutiques in Melbourne and surrounding suburbs.
“Despite the brand’s current issues, this administration presents an opportunity to purchase a known fashion brand in addition to an established online store and social media presence,” Crisp said.
Zachary the Label has 208,000 Instagram followers and has been worn by celebrities including the Kardashians and Kate Hudson. It is just one of a number of Australian fashion brands that have gone into administration or closed outlets over the past year due to a range of pressures.
“As the online retail marketplace expands and traditional geographical barriers to entry are removed, Australian retailers are dealing with more competition than ever before,” added Crisp.
The first creditors’ meeting will be held on Wednesday, 7 March. Expressions of interest should be registered before 15 March, 2018
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