Forty Colette retail outlets will continue to trade across the country, as part of a restructure of parent company Marquee Retail Group (MRG) following a two-month-long voluntary administration process.
The new trading entity for the Bernie Brookes-led fashion accessories and jewellery group will also continue operating The Daily Edited as an online-only brand.
Administrators from Mackay Goodwin were appointed to MRG in early April, due to an unexpected decline in sales since October 2023.
At the time, the group was operating some 60 Colette by Colette Hayman retail stores, as well as The Daily Edited e-commerce platform.
However, creditors have voted to accept a Deed of Company Arrangement (DOCA), which will see the business continue trading with a smaller network of 40 Colette stores.
In a statement provided to SmartCompany, Mackay Goodwin said the restructure has saved more than 400 jobs.
“This is a fantastic result, enabling an iconic business to keep its doors open,” said administrator and Mackay Goodwin CEO Domenic Calabretta.
“The team at Mackay Goodwin worked seamlessly with the team from MRG to make this happen, including many late nights, weekend work, and bi-lingual negotiations with overseas Chinese suppliers.”
Former Myer boss Bernie Brookes acquired Colette by Colette Hayman out of administration in September 2020, later forming Marquee Retail Group to house the fashion accessories and jewellery brand.
The group then went on to also acquire The Daily Edited, which fell into liquidation in October 2022.
The brand, which was founded by Alyce Tran and Tania Liu, specialises in personalised leather accessories, including handbags, wallets and clutches.
Commenting on the restructure, Brookes, who serves as chair of MRG, said there were fewer than 10 redundancies during the administration process.
“Mackay Goodwin evaluated alternatives for the business, including offers to purchase it (or parts of the business), however, the best outcome for creditors and staff was to accept the DOCA,” he said in the same statement.
“The entire MRG team showed remarkable resilience during this difficult period, and their efforts, along with the patience of suppliers and landlords are greatly appreciated.”
Brookes thanked the retailers’ customers and said the group will continue to honour all gift cards that were issued before the administration. New stock is expected to arrive in the coming weeks, he added.
“This is a huge weight off our shoulders for the leadership team and valued employees,” he said.
“The successful DOCA means we can keep the lights on, the doors open, and keep our team employed while continuing to supply Australians with the quality accessories they love.”
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Editor
Eloise is an experienced business journalist and editor, who has held senior editorial roles at SmartCompany since 2014. Prior to joining SmartCompany, Eloise was news editor at Books+Publishing, the trade press for the Australian book industry. Eloise has degrees in media and communications, marketing and business management, and political science. You can follow her on LinkedIn, and Twitter at @ellykeating.
