The retail and apparel sector has continued to suffer as consumers refuse to spend, with Melbourne-based accessories and apparel retailer Kari Accessories being placed into administration.
The move comes after several notable collapses in both the retail and apparel sectors, with Grab Jeans, Belinda International and Bettina Liano all collapsing this year, while earlier in the year smaller retailers Fashion Factory Clearance and Covers Design were also placed into administration and liquidation.
According to the Australian Securities and Investments Commission, Kari Accessories was placed into administration on October 12, with the first creditors’ meeting scheduled for October 24.
Administrators Domenic Calabretta and David Ross of Hall Chadwick were contacted by SmartCompany this morning, but both were unavailable prior to publication.
The company’s managing director, Tim Stannage, was also contacted but unavailable prior to publication.
The Melbourne-based business operates two stores in New South Wales, three in Queensland and six in Victoria, but distributes its accessories and jewellery through a number of different retail partners across the country.
A week before it entered administration, the company posted on its blog advertising a liquidation sale, saying “retail sales are tough and we need your help”. Stock was discounted by as much as 80%, with the company saying it was instructed that “all stock has to go”.
On October 6, it told customers that “we’re going out of business and you have only two days left”, with discounts continuing. The next day, it advertised its going out of business sale once again.
The business is primarily aimed at women, with fashion a main focus, although there is a large emphasis on handmade jewellery. The business claims its staff have more than 20 years of experience in the fashion industry.
The company also promotes an independent consultant program on its website. The program, which requires a start-up cost of $500, has consultants earn commission on all sales.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
