Well-known jewellery and fashion retailer Kleins has been placed into voluntary administration after collapsing with $20 million of debts.
The chain has more than 200 outlets across Australia, New Zealand and South Africa, including approximately 150 franchised stores and 50 company managed stores. Most of its stores are smaller retailer outlets based in regional shopping malls.
Ferrier Hodgson partners James Stewart and George Georges have been appointed as administrators of The Jewellery Chain, JDA Imports, and Kleins Franchising.
“We have only just started going through the books so it is too early to comment on the scale of the debt or the depth of the company’s financial position,” Stewart said in a statement. “We are assessing the situation and hope to work closely with all stakeholders as we identify the options available to the Kleins Group.”
The administrators will consider the sale of the business as a going concern. The business will continue to operate in administration while they examine the company’s financial records.
Meetings of creditors for each company will be held in Melbourne on 12 May.