Aussie fashion retailers Marcs, David Lawrence bankrupt on 'financial strife'

By

Benjamin Fitzgerald

Published
Feb 2, 2017

Iconic Australian retailers Marcs and David Lawrence have been placed in voluntary administration, according to local media, with the search for a buyer already underway.

According to the Sydney Morning Herald, the apparel brands landed in "financial strife" in recent months, and alerted staff of the news on Wednesday, saying the companies behind the brands have been placed in voluntary administration. 

M Webster Holdings bought David Lawrence from Truworth Ltd South Africa Group in 2000 and then took the womenswear brand to New Zealand in 2004.

In 2006, Webster Holdings acquired women's and menswear label Marcs from high-end retailer Oroton.

Malcolm Webster, the director of the companies operating the labels, blamed deteriorating sales, poor cash flow and market conditions for hurting the fashion brands, reported the SMH.

Some 1130 staff are employed by Marcs and David Lawrence in Australia, with another 42 in New Zealand.

All 52 retail stores, 11 outlets and 140 concessions will remain open during the proceedings, and wages will be paid until January 30, 2017. All gift cards will be honoured, said the companies.

Administrator Rodgers Reidy is undertaking a review of the businesses in a bid to find a buyer.

It's been a rocky 12 months for Australian and New Zealand retailers. Payless Shoes appointed administrators and consequently closed all stores two months earlier, while Kiwi children's retailer Pumpkin Patch also entered receivership last October.