The Satch boutique clothing chain has been placed into liquidation, administrators BDO announced this morning, just a month after the company was placed into its hands.
The liquidation comes after a shocking few months for the fashion industry, which has seen a number of chains including Belinda International and Bettina Liano collapse into administration. Brown Sugar was also placed into administration, but rescued by new buyers last week.
BDO partners Stephen Dixon and Laurence Fitzgerald said in a statement that the liquidation was approved on October 6 following a “lengthy, public and competitive trade sale process”, which concluded with the sale of assets and businesses to parties relate to the founder and director Jim Sachinidis.
“The assets sold consisted of inventory, fixtures and fittings. Lease obligations for nine Satch-branded stores and employee entitlements were transferred to the new owner.”
“The stores, in Melbourne, Sydney and Perth, will operate under a new corporate structure. Three loss-making stores were closed during the Administration.”
Lease obligations for nine Satch stores have been transferred to a new owner, along with employee entitlements. These will operate under a new structure, administrators said, with most employees retaining their job.
Dixon said a number of factors had contributed to the company’s downfall.
“Sales had declined by more than 20 per cent from 2010 onwards, partly due to the general economic downturn, combined with higher overheads, an increase in competition in the boutique clothing sector, and not having the optimum mix of trading stock,” he said.
ANZ has frozen pay packets for most of its top executives as the bank attempts to cut costs, with chief executive Michael Smith announcing the move to employees last month.
Smith said there would only be a limited budget for salary increases for the top 900 executives.
“We are taking action to position ANZ ahead of the curve by making decisions that demonstrate to our people, customers and shareholders that we are running our business in a responsible and sustainable way,” he said, according to Reuters.
“This includes monitoring and taking action on fixed costs, including executive salaries.”
The move comes as the Commonwealth Bank is also set to embark on a major cost-cutting program, dubbed Project 35, according to The Australian.
“It’s all about doing things more efficiently and more effectively,” a spokesperson told the publication.
The moves come as the banking sector is seeing a reduction in demand for both business and mortgage funding, with banks having to adjust to a new environment where consumers are less willing to spend and economic growth is curtailed.
The Australian sharemarket has opened 1% higher this morning after a positive lead from overseas stocks as fears begin to dissipate over the European debt crisis.
The benchmark S&P/ASX200 index was up 22.7 points or 0.5% to 4223.7 at 12.00 AEST, while the Australian dollar continued its rise above parity overnight, although fell to $US0.99c this morning.
AMP shares rose 0.71% to $4.32, while Commonwealth Bank shares rose 1.03% to $47.19. NAB shares rose 0.58% to $24.18, as Westpac shares rose 0.14% to $21.73.
In the United States, the Dow Jones Industrial Average rose 3% or 330 points to 11,433.2.
A new survey released by Master Builders Association has revealed expectations for industry activity and profits fell during August to reach their lowest point since the 2008 December quarter.
“Builders report a worsening in own business conditions and outlook, with private sector demand failing to pick up and fill the gap left as Building the Education Revolution, Social Housing and other government stimulus programs end,” said chief economist Peter Jones.
The survey found that the measure for expectations of employment growth is at its lowest point since June 2009, possibly forecasting industry job losses.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
