Australian fashion retailer Ally Fashion has gone bankrupt, leading to the closure of up to 185 stores across the country and leaving over 1,000 employees facing job losses.
The company’s liquidation was ordered by the Federal Court of Australia due to insolvency, marking another significant retail failure amid Australia's economic downturn, as per a report by the Daily Mail.
Founded in 2001, Ally Fashion was known for introducing 50 new styles per week for Autralian consumers. The company boasted of over 150 stores across New South Wales, Victoria, Queensland, South Australia, and the Northern Territory.
The retail company’s liquidation process will be monitored by Jeff Marsden and Duncan Clubb from BDO Sydney who will manage its financial affairs, and also oversee the shutdown process.
Professor Gary Mortimer, Retail Expert, Queensland University of Technology Business School attributes the company’s collapse to shrinking household budgets. According to him, the company suffered due to a rise in the cost of living which heavily impacted consumers’ discretionary spending on fashion, footwear, and accessories.
The closure has raised serious concerns about widespread job losses, with thousands of workers now unemployed, says Mortimer.
Besides, Ally Fashion, other major fashion brands, including Mosaic Brands—which owns Katies, Millers, Noni B, Rivers, and Autograph. entered voluntary administration last year. Luxury retailer Harrolds, popular label Dion Lee, and fashion chain Katies have also closed within the past year.
