Headline in today's Age newspaper -
Fletcher Jones on the brink
'Venerable clothing retailer Fletcher Jones last night became the
latest casualty of the gloom gripping Australian retail, being placed in
administration after 93 years in the tailoring trade.
The company joined a string of retail sector failures
this year that includes outdoors wear chain Colorado, Borders
bookstores, and fashion groups Ed Hardy, Bettina Liano, Brown Sugar and
Satch.
Staff at Fletcher Jones’ 45 stores across Australia were told of the predicament at 4pm meetings yesterday.
Fletcher Jones stores will continue to trade while administrator Bruno Secatore of Cor Cordis assesses the company’s situation.
‘‘It’s business as usual for customers and everyone,’’ he said last night, after confirming he had been appointed.
Founded in 1918 in Warrnambool by World War I veteran
David Fletcher Jones, the company expanded through the 1920s and 1930s
to become a postwar manufacturing success story that at its peak
employed 3000 at four factories.
But it was hit by the rise of Chinese manufacturing and the dismantling of clothing tariffs from the 1980s.
Fletcher Jones' current owners, the Dimmick family,
bought it in 1995. They slashed the number of shops, closing stores in
shopping centres where rent was expensive in favour of lower-rent
shopping strips.
Sales increased, with the introduction of the GST giving
the business a one-off boost as shoppers brought forward the purchase of
items such as suits.
But by 2000, sales had again started to suffer. The
turmoil in Australia's manufacturing sector has also continued, with
receivers taking control of packaging group HP, which employs 300
workers making a variety of products including bottles for Dettol,
Harpic and Finish.
National Australia Bank, which is believed to be owed
more than $50 million, appointed receivers Greg Hall and Michael Fung on
Tuesday.
Mr Hall said''The business is undercapitalised and that is the main
factor that has led to the decision to appoint receivers and managers
and voluntary administrators''.'
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| FJ's iconic gardens at the Warrnambool plant |
Read more:
http://www.theage.com.au/business/fletcher-jones-on-the-brink-20111207-1ojb8.html#ixzz1fvAeK8p0
Geelong businessman Dean Montgomery has purchased of the FJ site for an undisclosed sum over $1 million. He told The Warrnambool Standard newspaper he was keen to get the property rezoned to a mixed status that would open it up to commercial and residential possibilities. Previously the former factory, its gardens, and the silver ball had been in the hands of receivers and mortgagees, with neither putting their hand up to complete maintenance works ordered by Heritage Victoria. 9.5.2014
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