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Colette and The Daily Edited Avoid Collapse And Retain Over 400 Employees
https://www.whatjobs.com/news/australia-business-news/colette-and-the-daily-edited-avoid-collapse-and-retain-over-400-employees
Insolvency firm Mackay Goodwin has successfully restructured two chains - fashion accessory brands Colette and The Daily Edited, saving over 400 jobs.
It comes two months after taking on the voluntary administration of the chains.
Marquee Retail Group (MRG), the owner of these brands, entered voluntary administration following a sustained downturn in sales from October last year to March this year, attributed to rising inflation and higher interest rates.
Despite the challenging sales period, completing a Deed of Company Arrangement (DOCA) has secured the business's future, allowing it to keep trading and maintaining stores across Australia.
Domenic Calabretta, Mitchell Ball, and Richard Lawrence were appointed voluntary administrators to manage the company’s affairs.
The DOCA was finalized in two months, preserving more than 400 jobs with fewer than 10 redundancies.
MRG chairman Bernie Brookes said: “The new company will operate 40 stores under the Colette by Colette Hayman brand, along with its online site, and maintain the online business for The Daily Edited (tde.).”
Mackay Goodwin evaluated various alternatives for the business, including offers to purchase it or parts of it, but concluded that the best outcome for creditors and staff was to accept the DOCA.
Brookes added: “The entire MRG team showed remarkable resilience during this difficult period, and their efforts, along with the patience of suppliers and landlords, are greatly appreciated.”
This is the second time in four years that Colette has entered administration.
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The Sydney-based brand, known for affordable handbags, jewelry, and fashion accessories, once had 105 stores in Australia and New Zealand.
MRG acquired Colette at the end of 2020 after its previous administration earlier that year.
In 2022, MRG also added The Daily Edited (tde.) to its portfolio, a brand specializing in monogrammed lifestyle leather accessories.
Mackay Goodwin CEO Domenic Calabretta hailed the restructuring as a fantastic result that enables an iconic business to keep its doors open.
He said: “The team at Mackay Goodwin worked seamlessly with MRG to make this happen, including many late nights, weekend work, and bi-lingual negotiations with overseas Chinese suppliers.”
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