By business reporter David Chau
About Bardot
Bardot may refer to:
Bardot goes bust as it struggles in ‘highly cluttered’ retail sector
About struggles
Photo:
Since its launch in 1996, the company has opened 72 stores across the nation. (SUPPLIED: WESTFIELD)
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Bardot goes bust as it struggles in ‘highly cluttered’ retail sector
Map:
Australia
Popular women’s fashion brand Bardot has gone into voluntary administration, joining an ever-growing list of struggling Australian retailers.
Key points:
- Bardot has 72 stores and 800 employees across Australia
- The retailer says it is struggling to compete in a “highly cluttered, and increasingly discount-driven market”
- Gift cards and credit notes will be honoured for the foreseeable future
The company blamed a highly competitive retail environment for its financial difficulties.
“Despite double-digit growth in online sales … Bardot’s retail stores in Australia are competing in a highly cluttered, and increasingly discount-driven market,” its chief executive Basil Artemides said.
“Operating a national retail network in its current state is no longer sustainable.”
Since its launch in 1996, the company has opened 72 stores across the nation and employs 800 staff.
However, it also competes in a highly crowded market against Country Road, Witchery, Sportsgirl, Topshop, HM, Zara and other fashion rivals.
In the past year, several retailers have entered into administration.
As big retailers shut up shop, losses are mounting. It’s not only bad news for the owners, it’s not great for the banks and the economy.
They include fashion stores Karen Millen, Ed Harry and Roger David, footwear retailer Shoes of Prey and Napoleon Perdis Cosmetics.
While Bardot has not ruled out job cuts, Mr Artemides said he was “committed to identifying re-deployment opportunities wherever possible”.
His company has appointed consulting firm KPMG as its administrators to “lead a company-wide restructure” — to either sell the business or raise new capital.
“Although it has experienced significant growth in overseas markets, it has faced a challenging domestic environment in recent times,” said Brendan Richards, the KPMG partner responsible for Bardot’s administration.
He also sought to reassure customers, saying: “Store trading will continue on a business as usual basis.
“BOTH GIFT CARDS AND CREDIT NOTES WILL BE HONOURED ON A DOLLAR-FOR-DOLLAR BASIS FOR THE FORESEEABLE FUTURE.”
The first meeting of Bardot’s creditors will be held in Melbourne on December 10.
Topics:
retail,
business-economics-and-finance,
company-news,
fashion,
australia
