In what has been a tumultuous week for the Australian fashion industry, accessories brand Oroton and women’s apparel label Lover have both announced they are going into voluntary administration after similar accounts of diminishing sales.
Oroton, a 79-year-old luxury handbag retailer had been experiencing a slump in sales over the last few years, with the label garnering a loss in excess of $14 million in 2016. It was announced this morning that the brand could not make a return from the loss after the company conducted an eight-month review of sales and profit turnover. The company currently houses 59 stores in Australia, four of those in South Australia.
Current CEO of the Oroton Group, Ross Lane, explained that there was no alternative to voluntary administration. “The board is disappointed that it has had to take this step after running such a comprehensive process,” he stated in a statement to the Australian Stock Exchange. Deloitte are pursuing the sale or recapitalistion of Oroton with business set to continue as usual while these processes are undertaken.
Clothing label Lover has been the other casualty of the week with the label famous for its delicate bridal gowns and flouncy, feminine dress wear also placed into voluntary administration earlier this week. Financial advisory firm Ferrier Hodgson announced the state of the brand earlier this week yet business is resuming as usual with potential buyers invited to make a bid on the label. Administrator Morgan Kelly stated that “Lover is an iconic and well-established fashion brand that represents a unique opportunity for interested parties [and] we plan to work closely with Lover’s management team to find an acquirer for this popular brand.”
Heavily reduced items are available through the Lover online shop which remains active, and Oroton items remain priced at full retail value.