Administrators have sliced store and staff numbers at the one-time retail and manufacturing giant Fletcher Jones, as it shores up the 93-year-old business for sale.
Cor Cordis, appointed to the debt-laden clothing company last week, has announced 15 stores will close and 61 staff members will be made redundant. The closures leave just 30 stores nationwide.
The business, which turned over more than $24 million in the 2011 financial year, is being promoted as a “significant turnaround opportunity”.
Administrator Bruno Secatore says it was important to act quickly.
“As administrators, it was important that we acted quickly to shore up the viability of Fletcher Jones to make it an attractive acquisition so it can keep trading,” Cordis said.
He added that interested in the business had exceeded expectations, with dozens of offers 24 hours after its appointment and 10 serious bidders now.
Expressions of interest for the business are due tomorrow.
The first creditors’ meeting will be held on December 19 and offers are required by December 23. The first report to creditors is due on January 13.
Of the 15 stores earmarked for closure, the majority are in clearance outlets.
The list also includes Warrnambool, where Fletcher Jones opened its first store in 1924.
The stores are:
The company started in 1918 when returned soldier Fletcher Jones began tailoring, and eventually grew into a 3,000-strong business with a strong commitment to its employee-shareholders.
It collapsed last week under an $8 million-plus debt load, about half of which is owed to its owners, the Dimmick family, who are behind Geelong Textiles.
An employee told SmartCompany at the time that Fletchers had “not quite reached the younger market” and suffered under a difficult retail climate. Retail rents have also been blamed.
Smart Company is the leading online publication in Australia for free news, information and resources catering to Australia’s entrepreneurs, small and medium business owners and business managers.
