MENSWEAR chain Fletcher Jones will immediately close a third of its stores and shed 61 staff as administrators try to revive and sell the struggling retailer.
Subscribe now for unlimited access.
or signup to continue reading
Signalling the end of an era, the iconic Australian brand will even close its store in Warrnambool - the town where Fletcher Jones began life almost a century ago.
Most of the 15 stores that will close are clearance outlets, with Victorian and New South Wales stores hit particularly hard.
''We have identified the stores that were putting a financial strain on the group,'' said Bruno Secatore of administrator Cor Cordis.
''We had to act quickly to have an asset that was worth going for, to make it attractive to our potential purchasers.''
The 61 redundancies are made up of 53 retail staff and eight staff from the head office. Mr Secatore said staff were overcome with sadness and would be provided with counselling.
''All their entitlements will be paid, annual leave, long-service leave, redundancies, and if anyone wants any counselling we will make that available to them as well,'' he said.
All 15 stores are expected to close their doors by tomorrow, with remaining staff frantically carting out piles of suits, shirts and ties.
The Victorian stores that will close are Moorabbin DFO, Southland, Spencer Street and Warrnambool, which was established in 1924 and is now a clearance outlet.
In NSW, six stores will close, two will close in the ACT and one each in Queensland, South Australia and Western Australia.
The remaining 30 stores will continue to trade as normal, with Mr Secatore predicting good Christmas sales.
He said prospective buyers had already shown interest in the business. Indicative offers were due by December 23 and a sale was unlikely before January.
The latest victim of the retail slump was placed in administration on December 9 and owes $8.5 million to 180 unsecured creditors. Mr Secatore said soaring rents, the rise of Chinese manufacturing and the economic climate had contributed to the company's decline.
Well known for its affordable men's suits, Fletcher Jones was founded in 1918 by World War I veteran David Fletcher Jones.
The company became a post-war manufacturing success story, employing 3000 workers at four factories during its peak. The business was bought in 1995 by the Dimmick family, who are owed about $4 million.
The first creditors meeting will be held in Melbourne on Monday.
