Fashion Observer Magazine June. 2014 | Page 162

20 Australian Fashion Businesses struck down in 2013 Restructuring Australian Fashion Businesses for a stronger bottom line. Liquidation, voluntary administration, store closures, financial trouble, shrinking store foot print and sell-­ offs to conglomerates are some of the predictable headlines plaguing the Australian Textile, Fashion and Apparel industry consistently over the past two years. The latest stricken brands joining the list of those culled are former powerhouses Ksubi, Peeptoe Shoes, Kirrily Johnson, Willow, Collette Dinnigan, Super Shoe store, Fashion Fair and the recent sale of SUPRÉ to Cotton On Group. This list represents just some of the larger businesses, often ignored and not highlighted are the lesser known brand names shutting up shop on boutique fashion strips like Sydney’s Oxford St, where you’ll find them aplenty. You can recognise them side by side with identical empty glass windows formerly framed with current season delights, vibrant fabrics and tempting textiles, now replaced with paper posters and a temporary “pop up” convenience store or nail bar taking residency. This whitepaper explores some of the reasons behind the brand extinction and THiNK Consulting Groups role to implement strategies of transformation, turnaround and performance improvement to ensure that in 12 months time, we are not reporting further on the disarray of the once thriving Australian Fashion Industry. Reason 1: A quantitative failure of brands to adapt to change rapidly enough when the market place is dynamic and evolving towards new trends and technologies. Reported in BRW, direct from the administrators of Lisa Ho’s brands, “The descent of Lisa Ho Retail and Lisa Ho Designs into voluntary administration last May, owing about $10 million to employees and creditors, is an all-­too-­common case of an entrepreneur being too slow to admit that things need to change, says Todd Gammel, a business recovery and insolvency partner at HLB Mann