According to news.com.au and other Australian media reports, Australian retail clothing brand JEANSWEST (Chinese name Zhenvis) has recently entered the bankruptcy liquidation process.
The brand will also seek strong-willed acquirers or investors.
KPMG, the international accounting firm, confirmed on January 15 that KPMG had appointed partners Peter Gothard and James Stewart to take over Zhenvis and conduct an emergency financial analysis of the retail brand.
"Managers will look at all options for restructuring or selling [Jarvis ]," Peter Gothard said in a statement, adding that the brand would also seek a strong-willed acquirer or investor.
Mr. Gothard stressed that during the bankruptcy proceedings, Mr. Jarvis "would continue to operate "... At present, Mr. Jarvis has 146 stores and 988 employees in Australia.
Jeans is a traditional clothing brand that focuses on denim and casual wear, first founded in Perth, a western Australian city in 1972, and then developed into a well-known clothing brand in Australia 20 years later.
After entering china in the 1990s, mr. zhenvis expanded strongly in the mainland over the next decade and accounted for half of the mainland`s leisure apparel market. It has also caused a lot of controversy in the public opinion field, most famously in the name of the Qinghua teaching building "Zhenwei Lou" incident.
In addition, he has been stationed in new zealand, the middle east, russia and other markets.
James Stewart, head of retail restructuring at KPMG, said Mr. Jarvis`s bankruptcy filing was largely due to tough market conditions and intense competition in the online electronics market.
Indeed, the Australian retail sector, entering 2020, continues to deliver bad news. From the 2019 Christmas season to date, bankruptcy news has come from Harris Scarfe, women`s clothing retail brands and JEAN SWEST Zhenvis, a number of Australian local retail brands.
According to a number of Australian media reports,2020 will be followed by more Australian local brands out of business news.
Behind it is yet another failure to transform a traditional brand.
The main operating body of the business is Qiaosi Limited (hereinafter referred to as Qiaosi), which is owned by the Hong Kong brothers Yang Xun and Yang Zhao, who are actually the founders and major shareholders of Hong Kong`s Rising Sun Group.
Xuri bought Zhenvis in 1990, and by July 2017 it sold the loss-making Zhenvis Australia and New Zealand business to the Young brothers for HK $220 million in a move intended to privatize the Australian business to cover losses in the mainland.
Rising sun, which spun off its australian operations, set up its "zhenvis branch" that year to launch its independent electronic commerce business to support the expansion of the mainland electronic commerce market. However, the move did not effectively prevent continued losses in the retail sector.
A year later, the company sold its full stake in the company to a wholly owned subsidiary, King Tim Ltd., for HK $800 million, including its mainland clothing retail business. At this point, jenvis`s most important mainland and oceania markets have all been stripped of their parent company, sun.
Zhenwus used to be the star of the sun group brand, but also the good heart of the Yang brothers. At the time, the Sunshine Clothing Factory, opened by the Young Brothers in Hong Kong, had done a label processing business for JEAN SWEST.
The Yang brothers, who bought JEAN SWEST in 1990 and launched the "Jean-Vis ", formally entered the mainland market in 1993, opening their first store in Shanghai.
Having the genes for foreign brands, the blessing of hong kong companies, along with the reform and opening-up of the hungry mainland market and the booming mainland manufacturing industry, jean-vis, along with a number of hong kong-owned brands such as beni road, esprit, zodanu and fort lion dragon, has established a brand awareness for chinese consumers and ate the first dividend of china`s economic boom after reform and opening up.
At its peak in 2012, jenvis had domestic revenues of hk $4.959 billion.
However, with ZARA, H & amp; M, Uniqlo and other fast fashion brands entering China, has long sunk to the three or four five lines of the city completely localized to become a mass brand Zhenwei lost competitiveness. And the rise of electroniccommerce channels has brought a huge impact on the old-fashioned business thinking and slow transformation of zhenvis.
Since 2012, mr jenvis`s domestic retail business has been on the decline. According to public information, as of May 31,2018,2017 and 2016, Zhenvis Mainland China business recorded after-tax profits of -HK $46 million,-HK $45 million and HK $67 million respectively.
And looking at the same generation of crisis-ridden brands, the Mets Bonway, is in fact facing the same challenge. Since 2017, the Mets have released a series of brand transformation plans, but still face the problem of being forgotten by young consumers because product design hasn`t improved much and brand influence has faded.
It can be seen that the fashion market`s old and new alternations continue, the post-90s in the rush to put in freshness, has long forgotten to be far behind the youth.
Looking back, it is inevitable that jenvis`s australian business will go to liquidation, after all, the first to abandon it is the former most bullish beryl and gold owners.
The clothing market is a rapidly changing market, if not keep up with the changes of the times and the evolution of the industry, the glory of the past is only a passing, sooner or later will be forgotten in the corner of memory, leaving a elegy.
