Another apparel company is in trouble. The Sydney-based owner of fashion labels Marcs and David Lawrence, trading in New Zealand as M. Webster Holdings, has appointed administrators after suffering under deteriorating sales, “general market conditions” and poor cash flow.
Andrew Barnden and Auckland-based Paul Vlasic of Australasian chartered accountant network Rodgers Reidy were appointed as administrators to M. Webster Holdings yesterday. In Australia, its equivalent is M. Webster Holdings Pty and Webster Asset Pty, which have both appointed administrators also.
David Jones and Marcs collectively have 52 standalone stores, 11 outlets and more than 140 concession stores operating across Australia and New Zealand. The combined M. Webster companies employ around 1,130 staff, 260 of whom are employed on a full-time basis.
In New Zealand, the labels have 10 stores with 42 staff. Rodgers Reidy reported in a statement that employee wages were paid up until January 30, and superannuation was paid up until December 31 2016. It says staff will be kept up to date by their direct line managers – a hotline for further queries and an FAQ is available here.
Rodgers Reidy has indicated that the administrators intend to review the operations of Marcs and David Lawrence, and continue to trade while the businesses are offered for sale. Staff have been advised to tell customers that it’s business as usual unless instructed otherwise. It reports that the sole director of the three M. Webster companies, Malcolm Webster, says the administrators were necessary because of deteriorating sales, “general market conditions” and poor cash flow.
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