Today marks one year since the iconic fall of fashion giants Marcs and David Lawrence into insolvency, buckling under crippling debt. Find out what the experience was for the brands during the period.
Following a successful sales campaign, Myer purchased both Marcs and David Lawrence brands following its collapse in 2017. Insolvency firm Rodgers Reidy reflects on their experience when appointed as voluntary administrator.
The failure of the companies left over 1,170 jobs at risk and suppliers with significant exposures. “We were very mindful of the significant human element involved as we sought to achieve the best possible outcome for both the brands and the purchaser,” says administrator Andrew Barnden of Rodgers Reidy.
Myer was secured as the purchaser for Marcs and David Lawrence, which enabled both labels to continue to trade, offer employment to many of the employees and ongoing orders for many suppliers.
“One year on, the businesses are continuing to trade in the hands of a new owner,” says Barnden, who confirms that most of the Australian employees received an offer of employment from the purchaser and the employees that were not re-employed have been paid their outstanding entitlements in full.
“Many of the previous suppliers to Marcs and David Lawrence also benefitted from the sale as they were able to sell their current work in process to Myer which helped to minimise their losses.”
Most suppliers and creditors continue to trade with Myer currently, softening the impact of the high-profile collapse. The creditors accepted a proposal for the company to execute a deed of company arrangement and are expected to receive a distribution from Rodgers Reidy in the coming months.
“All in all we believe the outcome achieved was the best possible outcome considering the circumstances,” adds Barnden. “Marcs and David Lawrence had a great workforce who worked enthusiastically and tirelessly with us to maximise the prospects of saving the brands.”
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