Collapsed apparel chain Herringbone has been rescued by a German retail group.
Administrators BRI Ferrier announced yesterday that the company’s future had been secured following the sale of the chain to the Australian subsidiary of clothing group van Laack, which was established in Germany in 1881 and trades in 14 countries.
Herringbone Retail and Herringbone Staff were placed in voluntary administration in December last year.
Voluntary administrator, Martin Green, of BRI Ferrier, said the transaction had secured 37 jobs.
“Having eliminated the debt, the company should be very successful going forward,” he said.
Herringbone director and co-founder, John Mutton, said the sale “to one of the world’s leading shirt makers” will allow the brand to survive and prosper.
“It will also enable this iconic Australian label to become an international player in the fashion industry with an intended strategy for future expansion overseas.
“Herringbone will remain based in Australia, retaining key personnel and its distinct brand identity.”
Herringbone operates 10 retail stores throughout New South Wales, Queensland and Victoria, selling high quality suits, business shirts, ties and knitwear.
The decision to appoint the voluntary administrator was taken by the directors of Herringbone following a slump in sales, and a corresponding downturn in forecasts for the balance of the 2009 calendar year.
After his appointment, Green said the immediate strategy was to close unprofitable outlets and reduce unnecessary overheads, while negotiating with potential buyers and parties interested in injecting required capital. Accordingly, stores continued to operate, and sales orders were met.
Financial details of the transaction remain confidential.
Herringbone was founded 12 years ago by John Mutton and Matt Jensen.