Oroton Group, owners of luxury accessories chain Oroton, entered the brand into administration at the end of November. The chain is set to operate as usual until a decision is reached regarding the brand's future.
The luxury brand had a physical store in Newmarket which recently had large sales throughout the store. The brand also has an outlet store located in Onehunga's Dress Smart factory outlet centre. It specialises in handbags, also offering eyewear, scarves and umbrella.
Similar to the closure of Topshop this year, Oroton stores worldwide were reportedly failing to draw in the foot traffic needed for higher rent spaces. The Australian company was founded in 1938 and has over 70 stores worldwide.
Oroton employs over 550 staff across Australia, New Zealand and Malaysia, but will continue to trade until the business's future is further decided.
The company today appointed Deloitte Restructuring Services partners Vaughan Strawbridge and Glen Kanevsky as administrators.
The administrators plan to either re-engage with outside investors and stakeholders to progress a sale or recapitalise the brand with hopes to sell a portion of the business.
Oroton is one of many fashion retailers this year to be placed into administration, and fits the mould of mid-level luxury retailers struggling to find their place in in the new market.
With brands such as Oroton, which fall in between mass-market and luxury retail, the lack of brand awareness can be detrimental to profit. Retailers which survive in the middle spectrum are ones which have a devoted brand loyalty, such as Deadly Ponies or Saben. Finding itself caught in the middle price range of approximately $500 per bag meant Oroton missed its target demographic (Millennials) as the prices were considered out of reach for a relatively unrecognisable brand.
For Oroton, there will be a first meeting of creditors next Monday December 11.