Wittner shoes is the latest local retailer to face closure, with administrators appointed to manage the 113-year-old company. Its collapse follows the closure of Jeanswest stores and chains under company Mosaic, including Katies, Rivers and Noni B.
This spate of insolvencies has already led to the loss of thousands of retail jobs nationally.
How big is this retailer?
Wittner has 20 standalone stores nationally. At the same time, 25 stores that sit inside the floors of department stores Myer and David Jones.
Its management said while online sales were up this year, so too were its costs.
“The growth in sales has been eroded by cost pressures from rising wages and occupancy costs, and more recently challenging trading conditions and supply-chain disruptions,”
a company statement said.
Wittner’s administrators say they will keep the stores trading, while they try to sell or restructure the footwear business.
“We understand the appointment of administrators will be particularly concerning to Wittner’s employees,” Deloitte’s Sal Algeri said in a statement.
“Please be assured that trade will continue on a business-as-usual basis as we conduct an urgent review of the group’s finances.
“And seek expressions of interest (EOI)s from parties interested in the sale or recapitalisation of this iconic Australian brand.”
Wittner shoes fabric was first founded as a mail order business back in 1912.
Deloitte did not say home many employees it has today.
The Retail and Fast Food Workers Union says it represents a small number of members at Wittner, and as well as some from Jeanswest and Mosaic.
“It is an ongoing concern for us particularly because these boutique brands are heavily feminised,” the unions Josh Callinan told ABC News.
“And often employ older women who have been in those roles for a long time and often find it harder to find new work.”
The spokesperson said Wittner has a “broad and loyal customer base”, including more than 300,000 Wittner Co Rewards members and more than 400,000 social media followers.
Its move to appoint administrators comes weeks after Jeanswest announced its decision to close all brick-and-mortar stores and cut hundreds of jobs after entering administration.
Mosaic Brands – the company behind clothing brands Millers, Katies, Rivers and Noni B – also collapsed in recent months.
