Subdued sales and savage discounting in the clothing and footwear industry appear to have claimed another major retailer, with Melbourne shoe company Figgins Holdings collapsing into liquidation.
The company, which used to operate 140 stores around Australia, owned the Midas, Emporio, Mollini and Scooter brands and previously operated the Shoobiz and Evelyn Miles and Florsheim brands.
The company’s collapse comes just over 12 months after it announced it was closing the 43 store Shoobiz chain, with the loss of 220 jobs. The company later shut some Evelyn Miles stores and rebranded others as Midas stores, before selling the Florsheim brand.
Management blamed falling demand and competition from retailers such as Kmart for the closure of the Shoobiz chain. Comments from retailers reporting results for the six months to December 31 have indicated that conditions remain patchy in the women’s fashion segment, with discounting rife.
Data from research firm IBISWorld shows revenue at Figgins Holdings plunged 33.5% during 2008-09 to $94.5 million.
The company’s employee numbers fell 78.1% to 200 – a far cry from the 832 staff Figgins employed just three years ago.
According to ASIC documents, Figgins was placed in voluntary liquidation after a wind-up application from a creditor on February 18.
The Australian Financial Review has reported that the company’s debts are more than $18 million.
Gregory Andrews of insolvency firm GS Andrews and Associates was not available for comment prior to publication.
It was founded in 1965 by Don Figgins and has been run by his son Jeff since 1994, when Don died with his wife in a helicopter crash.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
Comments