By Eli Greenblat
Yet another fashion retailer has collapsed in the midst of the worst trading conditions in 50 years, with Brown Sugar placed in voluntary administration putting the future of 50 full-time staff and 170 part-time crew in doubt.
Deloitte Corporate Reorganisation Group, Sal Algeri and Tim Norman, have been named as joint voluntary administrators to the clothing group which has 40 stores in Victoria, New South Wales, South Australia, Western Australia and Tasmania.
Brown Sugar's woes threaten to add the chain to a number of high-profile collapses in the fashion retail sector this year as shoppers hold onto their cash or head online for their purchases. These include Colorado and women's fashion outlet Bettina Liano, booksellers Borders and Angus & Robertson.
A creditors' meeting for Brown Sugar will be held on August 12 where the voluntary administrators will outline their initial findings.
“Our first priority is to try and achieve the best possible outcome for all stakeholders - employees, creditors and customers,” said Mr Algeri.
“All Brown Sugar stores will commence a stock clearance sale shortly while the Voluntary Administrators assess the company's financial position and seek expressions of interest to purchase the retailer,” he said.
Mr Algeri said the Brown Sugar brand suffered as a result of successive management changes since 2009. Despite the current management team working to restore the company's trading position, adverse trading conditions and falling consumer sentiment had continued to hamper the company's return to profit.
Mr Algeri said that while the company continued to trade, all ongoing employees' salaries and benefits would be honoured.
egreenblat@theage.com.au