Melbourne-based denim label Grab Jeans, which developed a following during its six years of trade, has collapsed, weighed down by debts, weakness in the fashion industry and the increasing popularity of online sales.
But Jim Downey, of insolvency and reconstruction service specialists J P Downey & Co, expects to sign off on a new owner shortly, most likely from the fashion industry.
Downey says while there’s not a lot of joy in the case, there will be a new operator.
“It’s symptomatic of what is happening in retail at the moment, particularly in fashion,” Downey said of the voluntary liquidation.
“There’s so much happening online.”
Grab Jeans, jointly owned by Grant Moffitt and Amanda Gilham, started trading in 2005, and is believed to have pared back its retail stores to just one. Its jeans have been sold in the upmarket department store David Jones.
Downey says in addition to the directors taking a hit, a debenture holder is owed a substantial amount and the Australian Taxation Office has been a “major catalyst” in the collapse.
“The GFC times were extraordinary and people shouldn’t think that the office will be as flexible as they were during those times,” Downey says.
“They’re back to their attitude that they’re to collect their revenue.”
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