The Australian operations of US shoe retailer Steve Madden has been placed in voluntary administration by its local licensee.
The chain, which has 35 stores across Australia including nine standalone stores, eight clearance stores and 18 Myer concessions, is now in the hands of administrators James Stewart and John Lindholm of Ferrier Hodgson.
Stewart told AAP that the business had been hit hard by the global financial crisis and had struggled to maintain an appropriate level of working capital.
“The [manager] had some fairly serious health issues which I think impacted his management time on the business.”
Stewart will keep the chain trading and as he tries find a buyer for the business, which had turnover of $17 million last year and employs around 200 people.
“Steve Madden is a recognised international footwear brand which has been well supported by Australian consumers,” Stewart said in a statement.
“An opportunity exists for an experienced investor to continue to drive the brand’s penetration in the Australian market.”
Conditions appear to be difficult in the shoe sector. Earlier this year, Melbourne-based footwear group Figgins Holdings shut 43 stores in its Shoobiz chain and sold its Florsheim brand due to the weak retail environment.
Steve Madden opened its first Australian store in Melbourne Central in 2005. The US business was founded by New Yorker Steve Madden in 1990, making shoes from a factory in the suburb of Queens.
But in 2002, Madden was sensationally convicted of money laundering and fraud and jailed for 41 months and subsequently forced to resign as CEO.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
