Ed Hardy Sales Slow
THE Australian arm of American streetwear brand Ed Hardy has collapsed just three years after entering the local market,
Four of the chain’s 10 stores are being closed down by administrators.
Simon Wallace-Smith and Tim Norman, partners with accountancy firm Deloitte, closed the company’s eastern suburb Paddington store in Sydney, the Pacific Fair store on the Gold Coast and the Brisbane and Adelaide stores following their appointment as voluntary administrators on Tuesday. Mr Wallace-Smith said the collapse was a result of “slowing sales and the competitive nature of the retail industry” — factors many retailers have blamed for unimpressive performance over the past six months.
Six remaining stores — of which three are in Melbourne with another in each of Sydney, Perth and the Gold Coast — would continue to operate while the administrators assessed the company’s finances.
“The aim of the voluntary administrators will be to evaluate the financial position of the companies and to investigate options to restructure the business,” Mr Wallace-Smith said.
The administration relates only to the Australian business and does not affect the US parent company, Deloitte said in a statement.
News of the collapse follows a series of downbeat financial reports from major retailers, with camping and outdoor wear chain Kathmandu and Just Jeans parent Just Group downgrading sales forecasts as a result of a downturn in trading conditions since the start of the calendar year.
Woolworths’ Big W chain, furniture and electrical giant Harvey Norman and Wesfarmer’s Target chain have reported sales declines for the fourth quarter of the financial year.
