The party’s over as fashion retail chain Frat House collapses into liquidation
Thursday, August 16, 2012/
Liquidators have been appointed to fashion retailer Frat House, another victim of the financial crisis gripping many retailers.
The Frat House website describes the chain of 10 stores in Victoria, New South Wales and Queensland as stocking “preppy fashion with an edgy twist”.
Raymond Sutcliffe was appointed as liquidator of the fashion retailer last week and told SmartCompany some of the retailer’s stores have closed while others have been sold and will continue trading.
Sutcliffe is in the process of organising a creditors’ meeting for August 24.
“It’s too early to say what caused [the liquidation] but the global financial crisis in retail is one of the major causes,” he says.
Sutcliffe is unable to say how many staff have lost their jobs or how much debt Frat House is carrying.
He says all staff have been paid in full, but there are “a few major creditors” along with a number of unsecured creditors.
“The situation is the company ceased trading some time prior to my appointment,” he says.
Shaz Fitisemanu, manager of the Frat House store at Melbourne DFO, told SmartCompany the DFO store was acquired by women’s fashion retailer Barkins about a month ago.
“We are still trading as per normal and there is no word of us closing down whatsoever, sales are still great for us at the moment,” she says.
SmartCompany contacted Barkins for comment but no response was available prior to publication.