Just months after sleepwear king Peter Alexander was feted on television program 60 Minutes for making it in the United States, the owner of the chain, Solomon Lew’s Premier Investments, announced it will shut the two remaining US stores.
The Peter Alexander chain is owned by Just Group, which Premier acquired in September last year. The decision to expand Peter Alexander into the US was taken before Lew got control of Just and Premier said yesterday in a statement that the decision to shut the US stores “reflects the board’s commitment to take the decisions that are necessary to maximise returns for shareholders”.
Premier said a strategic review of Peter Alexander’s US operations had shown the downturn in retail spending made it unviable to continue with the stores.
“The deep recession in the United States has made retail conditions in that country extremely difficult, with well-known retail brands such as Ruehl (a part of the Abercrombie and Fitch Group) being closed down.”
However, Premier will continue to look at other options to give the brand a presence, including wholesale and online sales.
The company has also emphasised that the 25 Peter Alexander stores and two stores in New Zealand were unaffected by the decision.
“This business is very profitable and is continuing to grow.”
Premier’s accounts will not be impacted by the closures.
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.
