Jeanswest Collapses – 2020 Not Looking Good for Australia

“What consumerism really is, at its worst,
is getting people to buy things that don’t actually improve their lives.”
~ Jeff Bezos Australian retailer Jeanswest is the latest
casualty in the struggling Australian retail sector. The company went into voluntary administration
yesterday with the future of their 146 Australian stores in doubt. Although Jeanswest was founded in Perth in
1972, it was bought out by Hong Kong company Glorious Sun in 1994, which expanded the chain
into China, Russia, Vietnam, Indonesia, and of course Hong Kong. However, Glorius Sun sold the Australian side
of the business to a private Hong Kong company called Howsea Limited in 2017. Since then, the Australian operations have
been doing poorly, and consequently, the Australian side of the business is facing collapse. Multinational accounting firm KPMG have been
appointed as administrators with a spokesperson saying, “Jeanswest will continue to operate as we
consider all options for the restructure or sale of the business. Like many other retailers, the business has
been challenged by current tough market conditions and pressure from online competition.” Just last week, on the 9 January 2020, Australian
fashion retailer Bardot announced that it will be closing 58 of its shops with 530 workers
to lose their jobs. Administrators KPMG commented, “The store closures were a very difficult
decision. Subject to ongoing trading performance and
discussions with landlords, it is not our intention to close further stores at this
point in time. I would like to thank Bardot staff for their
hard work and efforts during this process.” Just last month, December 2019, department
store chain Harris Scarfe collapsed into receivership becoming another high-profile casualty in
this ever-increasingly severe retail downturn. 21 of its stores will be closed nationally
with hundreds of jobs being lost in the process. Receivers Deloitte commented on the recent
restructuring, “This has been a difficult decision, but
one necessary to position the Harris Scarfe business for a successful sale and continued
operation. Our review of the store network included a
range of factors, including past and likely future profitability. Going forward, we certainly remain focused
on running the broader store network, and selling the business as the best outcome for
remaining employees and suppliers.” Earlier this week, Mosaic Brands (the parent
company of clothing retailers such as Noni B, Rivers, Rockmans, and Katies) announced
that its sales took a battering in the second half of 2019 with the ongoing bushfire crisis
and falling consumer confidence being held responsible. The company stated, “Sales through the second half of November
and throughout December – a critical sales period for the group – were significantly
impacted by the ongoing bushfire tragedy. 20% of the group’s stores have been directly
impacted by the fires, and some 32% of the group’s 1,386 stores are located in regional
areas where consumer confidence has been particularly fragile.” We can see here that over the last month,
Mosaic’s share price has collapsed by more than 25%! It looks like as Australia burns, so does
the Australian retail sector. The Australian economy was already struggling
in 2019 with businesses and consumers tightening their belts. The ongoing bushfire crisis has just added
to our woes. But a bit of good news, recent rainfall has
brought some relief to bushfire-affected areas, however, with all good news (as we have seen
of late) seems to come the inevitable bad news, “BOM warns of flash flooding as rain brings
bushfire relief across NSW”; “Bushfire-ravaged areas of Victoria to receive dangerous deluge
of rain”; “Bushfires: heavy rain to bring relief but also threat of floods, landslides”. And that’s the current state of Australia. I hope this doesn’t turn any of you off
from visiting Australia. We really do need your tourism dollars. Please, if you can, come to Australia… Who am I kidding, we’re f***ed!

18 thoughts on “Jeanswest Collapses – 2020 Not Looking Good for Australia

  1. Nihilistic much? Settle down. This has been the ebb and flow of our system since the industrial revolution. There are savers and there are spenders. There are those who invest and there are those that go buy new Nike shoes. There are those that that watch the business cycles and there are those that watch netflix. Everything is as it should be for the individual. Collectively we are not fucked. Fires are older than the aboriginals in this land, same as floods…

  2. Who wears Jeans these days ? You gain a few kg and you need a pair. The new trend is elastic waist pants. You can ritually gain 10kg and they will stretch out and still be wearable, saving money at the same time.

  3. What's the problem? The free market at work weeding out the weak? Businesses need to reset otherwise we sit with zombie businesses basically living off debt. Waiting for the boom when all the money filters in from people rebuilding because of the bushfires! No need to be so bloody negative!

  4. A couple of other big-name closures that I forgot to mention: EB Games (closing at least 19 stores across Australia), McWilliam’s Wines (Australia’s sixth-largest wine company) went into voluntary administration, and Curious Planet (formerly known as Australian Geographic) will be closing 63 stores.

  5. Brilliant again you say it how is it that we climbed on the sheeps back at one time and retail was not far behind now we a climbing on an over priced housing market and falling off a cliff……… when all this b and s hits when and yes it will come !!!!! a recession as retail is evaporating.

  6. I'm a kiwi and lived in Perth for 5yrs. I absolutely love the place and the people are so friendly and optimistic. You don't know what you've got. NZ is good…but Australia is better

  7. Jeans west was only ok. I'm not that surprised it's gone. Not an example of a struggling economy, more an indicator of lack of innovation and lazy staff with no work ethic (average Australian workers) businesses that don't put any effort in deserve to fail.

  8. you should do a video on how the australian economy would cope if we shutdown all coal mining. of course you would have to mention inda and china would simply source worse quality coal from other countries regardless. pretty sure the effects on our economy would be far worse than what's happenign in the retail secttor and would result in a worse standard living for a lot of people for no net benefit anywhere else.

  9. But the government says the economy's in great shape. They cannot bring themselves to say the "R" word.

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