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Women's clothing chain Brown Sugar runs into administration
08
Aug '11
Brown Sugar, the Australian mid-range fashion chain for women that designs, develops and manufactures its own collection, has run into administration.

The company, having a chain of 40 stores with 24 in Victoria alone, was struggling for some time and finally bowed to the grim conditions that are prevailing in Australia's retail sector.

The retailer for women's wear has become the latest company to run into administration after Borders, Colorado and Bettina Liano due to a buyer's strike. However, Brown Sugar also suffered from other problems like unstable management and supply problems.

Sal Algeri of Deloitte Touche Tohmatsu has been appointed as the administrator, who immediately announced a stock clearance sale that is to begin 'shortly'.

At the moment, the job of about 220 people working for the stores seems to be safe, but they might lose their jobs if the administrator decides to close the stores after assessing the company's assets.

As an immediate measure, however, the administrator had announced that shoppers possessing Brown Sugar gift vouchers would be given discounts for only half the face value.

Fibre2fashion News Desk - India

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