In a turn of events that has sent ripples through the Australian fashion industry, a well-known homegrown fashion brand has unexpectedly collapsed, leaving a trail of closed stores and job losses in its wake.
Ally Fashion, an Australian-owned fast fashion retailer that has been a staple in the wardrobes of many since its inception in 2001, has been ordered into liquidation by the Federal Court. The brand, which prided itself on offering contemporary ready-to-wear pieces for every woman, has seen a sudden end to its operations, with 51 of its 160 stores across Australia shutting down immediately.
The closure of these stores has resulted in the unfortunate loss of 250 staff positions, a significant blow to the employees and the retail sector at large. The liquidation, which was reported by news.com.au, came after a landlord’s application for outstanding rent, leading to the appointment of Jeff Marsden and Duncan Clubb of BDO Australia as liquidators on February 28.
In a bid to salvage what remains of the company, the liquidators have ceased operations at the underperforming stores to improve financial viability. The affected stores span across the nation, including 11 in New South Wales, 19 in Queensland, seven in South Australia, eight in Victoria, and six in Western Australia.
In a surprising twist, BDO Australia has entered into a licence agreement with a related entity of the director, David Dai, to continue operating the remaining stores. This move, according to Mr Marsden, is aimed at keeping the business afloat while they ‘urgently explore options to restructure, recapitalise or sell the business.’
Before its collapse, Ally Fashion boasted of its success on social media, highlighting the arrival of over 50 new styles per week and positioning itself as a trend-defying destination for fashion-forward women.
This collapse is not an isolated incident but part of a larger trend that has seen the Australian fashion industry take a severe hit. Other high-profile retailers such as Mosaic Brands, which housed iconic brands like Autograph, Noni B, Katies, Millers, and Rivers, have also fallen into liquidation. The luxury fashion brand Harrolds and the prestigious Dion Lee, known for dressing celebrities like Taylor Swift and Dua Lipa, have similarly succumbed to the pressures of the market.
Professor Gary Mortimer from the Queensland University of Technology Business School has pointed out that the cost of living crisis has led to a reduction in discretionary spending by Australians. This has had a worrying impact on the retail sector, with thousands of retail jobs being lost.
What are your thoughts on the current state of the Australian fashion industry? Have you been affected by the closure of Ally Fashion or other retailers? Feel free to share your experiences and insights in the comments below.
Also read: The end of Rivers: What it means for Australians retail and jobs
