The fashion retailer, Brown Sugar, has been saved from administration following its dramatic collapse in August of this year. The Australian designer suffered heavily from a combination of both, several changes in management since 2009 and also the effect that the global recession has had on the industry. Consumers are more inclined to keep their money in the bank over the past couple of years and the fashion industry, which is often seen as a luxury as opposed to a necessity by many, has been hit hard.
The company has employed 220 people however it was on the verge of complete annihilation until Brand Directions bought the company over and has promised to keep the Australian fashion icon’s 16 stores open meaning that over 100 employees of the company will definitely be keeping their jobs.
The very existence of the Brown Sugar label was in serious jeopardy after mismanagement left it financially crippled and a quick stock clearance occurred not long after it went into administration seemingly spelling the end for the business that has been in operation for over 30 years and has stores all across New South Wales and Victoria.
The Australian fashion industry is estimated to be worth around 10 billion dollars however that hasn’t stopped many companies feeling the pinch of recession and suffering as a result; both Fashion Factory Clearance and Covers Design have already collapsed this year and, as more and more shoppers elect to keep their money in their purses, it looks as though the trend is set to continue.
