Fashion retailer Ojay has collapsed with David Coyne and Gideon Rathner of Lowe Lippmann appointed as administrators.
Ojay’s administration is yet another blow to the fashion industry and follows the recent liquidation of Frat House and the collapse last year of Brown Sugar, Grab Jeans, Belinda International and Bettina Liano.
The fashion retailer was founded in 1976 and has stores in Victoria, New South Wales, Queensland and Western Australia.
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Coyne told SmartCompany “it is still very early days in the administration” and said at this stage he was unable to comment.
Ojay reduced its prices by 40% last year but this move was not enough to address the fashion retailer’s problems.
A spokesperson for Ojay said the business was not commenting at this stage.
David Gordon, retail specialist at WHK, told SmartCompany the collapse was “very sad news” for the retail sector.
“Ojay were veterans of the apparel game in Australia, with a very good reputation,” says Gordon.
“I suppose you would say this is probably quite a telling indication of the impact of the quick-fashion low-price entrants into the market because their product is mostly after-five wear.”
Gordon says Ojay did not have a presence with stockists such as Myer or wholesale, which would have made the business “extremely vulnerable”.
“It indicates that without a real multi-sales channel you are extremely vulnerable in the current climate,” he says.
A creditors meeting will be held on September 10.