Jeanswest to hold huge sale on 350,000 pieces of stock after company went under as liquidators promise ‘storewide discounts to shift stock’

More than $20 million worth of stock is about to go on sale after fashion giant Jeanswest entered voluntary administration last week.

The 53-year-old casual wear company famous for its denim products will close 87 brick and mortar stores around the country as it pivots to operating online only.

More than 350,000 items — including 138,000 pairs of jeans — will be available on the cheap from Tuesday.

“There will be storewide discounts to shift the stock, which includes 77,000 units of new pieces of clothing and footwear that were ordered before the company entered administration and have only just arrived in warehouses,” administrator Lindsay Bainbridge said.

“Everything is reduced and sales will apply both at retail stores and online. All sales will be final during the closing event.”

Bainbridge said there had been considerable interest in the fate of Jeanswest, and he expected customers to jump at the opportunity for a bargain.

“The goal is to clear the stock, maximise returns for creditors and get the business ready to be restructured as an online operation,” he said.

“We have spoken to all staff and will continue to operate all stores at this stage while we run out the stock.”

Queensland University of Technology retail expert Gary Mortimer said the closing down sale could be a big blow for surviving competitors like Just Jeans and Jay Jays.

With shoppers tightening their belts and balancing the family budget to keep the lights on at home and food on the table, spending on a new pair of pants has not exactly been a priority, Mortimer said.

“My prediction is that if shoppers are taking advantage of the massive discounts, they then won’t be going to Jay Jays or the like, so those brands are exposed to the closure at Jeanswest. There’s a knock-on effect,” he told 7NEWS.com.au.

It was announced on Wednesday that parent company Harbour Guidance had called in administrators, with the move leaving 600 jobs at risk.

Administrators Pitcher Partners Melbourne said the owners had explored every avenue to “keep Jeanswest going, but market conditions mean sustaining bricks-and-mortar stores is not viable and unlikely to improve”.

While Australia’s Jeanswest stores will close, three outlets in New Zealand have survived the massive cull.