Ally Fashion: Major Australian fast fashion retailer suddenly shuts stores and sacks hundreds
A cash-strapped Australian fast-fashion retailer has suddenly closed scores of its stores across the country, putting 250 staff out of work.
Ally Fashion Pty Ltd was forced to immediately shutter 51 of its 160 stores on Thursday after liquidators appointed by the Federal Court on February 28 urgently assessed the company’s dire financial situation.
The Australian-owned company was established in 2001, with 160 stores across Australia and an online store.
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By continuing you agree to our Terms and Privacy Policy.Liquidators Jeff Marsden and Duncan Clubb of BDO Australia were called in after an application by a landlord for rent arrears.
“Following an urgent assessment of the business by the Liquidators, we have ceased operating 51 retail stores to improve the financial viability of the Company,” a BDO statement read.
“In addition, we are pleased to advise that we have entered into a licence agreement with a related entity of the Director, David Dai, to continue to operate the remaining stores.”
Liquidator Jeff Marsden said Ally Fashion is a well-known Australian brand, with a dedicated team.
“The closure of underperforming stores and entering into a licence agreement will allow the business to continue operating in the short term whilst we urgently explore options to restructure, recapitalise or sell the business.”
STORE CLOSURES
NSW: 11
Qld: 19
SA: 7
Vic: 8
WA: 6
