Another giant collapsed. The former clothing brand giant JeansWest (JeansWest) Australia is facing bankruptcy!
Yes, you read that right , Jeanswest, this once popular global clothing brand mainly manufacturing jeans, has entered the twilight!
Jeanswest was founded in 1972. It is one of the local clothing brands founded in Australia. Its well-known products include denim series and maternity products. series, acquired by brothers Yang Zhao and Yang Xun in the 1990s, gradually entered the Chinese market and became a popular brand for a time.
As of 2019, Jeanswest has opened more than 2,000 chain stores in 20 provinces in China. However, more than 6,000 layoffs, more than 1,300 store closures, and a 65% decline in performance are the true portrayal of Jeanswest since 2013…
Continuously declining performance and continuous losses , let this former giant lose its glory!
On January 15, according to the “Daily Mail” report, Jeanswest Australia announced that it had entered the voluntary administration process and began Entering the stage of bankruptcy liquidation. Currently, Jeanswest has 146 stores in Australia, and nearly 1,000 employees are at risk of losing their jobs.
Data show that in 2016, Jeanswest’s retail business revenue in the Australian and New Zealand markets fell 12.3% to HK$955.1 million; the two major markets of Australia and New Zealand operated a total of 224 stores, a year-on-year net Reduce by 4 rooms. “Daily Mail” pointed out that Australia’s retail industry is facing its lowest level since 1990, and has been further impacted by international e-commerce platforms such as Amazon.
KPMG, the accounting firm that took over Jeanswest, stated that Jeanswest will continue to operate and that accountants will conduct an urgent analysis of the company’s operating conditions and consider all possible options, including restructuring. , sell or attract investment.
“Daily Mail” stated that Jeanswest’s business outside Australia will not be affected by this trusteeship.
At its peak, there were more than 2,500 stores nationwide
It was once the largest store in China The leader in the apparel industry
Jeanswest has gained popularity in the Chinese market thanks to the two brothers Yang Zhao and Yang Xun. In the early years, two brothers, Yang Zhao and Yang Xun, opened a Xuri garment factory in Hong Kong and engaged in OEM processing business. In 1990, two brothers who were not satisfied with OEM processing acquired JeansWest and soon expanded the JeansWest brand in the Australian market.
In 1993, Yang Zhao and Yang Xun set their sights on the highly potential mainland China market, established Jeanswest International Ltd, and began their layout. In the same year, JeansWest opened its first store in Shanghai and quickly gained favor from the market. Jeanswest, which has been making rapid progress, is full of confidence in the domestic market. In 1995, it also moved its headquarters to Huizhou City, Guangdong Province, which is also the ancestral home of the Yang brothers.
Jeanswest’s strong performance also helped its parent company, Rising Sun Group, to successfully go public in 1996. According to media reports, at the peak of its development, Jeanswest had more than 2,500 stores nationwide and sales of nearly HK$5 billion. It was once the leader in the domestic clothing industry.
However, in 2012, an inventory crisis occurred in China’s clothing industry. A series of popular casual brands such as Semir, Metersbonwe and Jeanswest were trapped in a “high inventory” dilemma. , a wave of store closings began.
At the same time, foreign fast fashion brands, such as Zara and H&M, also entered the Chinese market one after another to further seize the market of domestic clothing brands. According to data from Rising Sun Group in 2017, the number of JeansWest stores nationwide was 1,298, a decrease of 260 stores from 2016. As of June 2018, the number of JeansWest stores had further declined to 1,164, which was half of its peak period.
In early August 2018, Rising Sun Group issued an announcement announcing the sale of Jeanswest’s Chinese business for HK$800 million, which was acquired by the major shareholders and founders Yang Zhao and Yang Xun brothers. Rising Sun Group said that due to the increasingly fierce market competition; the rise of e-commerce has impacted the physical store business; to this day, Jeanswest is difficult to attract customers based on its reputation of “excellent value for money”. Therefore, all the management’s efforts have not brought substantial improvement to Jeanswest’s mainland business.
In 2019, Xuri Group issued another announcement announcing the sale of Jeanswest International to brothers Yang Zhao and Yang Xun. Rising Sun Group stated that the group’s Australian and New Zealand markets have been in losses for two of the past three years, reflecting that if it wants to regain its former glory, the group needs to make in-depth transformation and reinvestment in product design, market positioning and e-commerce platform. This move Not only is it expensive, but it is difficult to see immediate results in the short term. Therefore, the group plans to divest this part of the business, which will have a positive impact on the group’s profit performance in the next few years.The funds obtained from the sale of the business can be used to invest in markets with greater potential.
This means that Rising Sun Group has successively divested Jeanswest’s businesses in China, Australia and New Zealand.
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