Big sale, stores close after Transit Clothing calls the administrators


WA's growing retail climate has caused another victim with the collapse of nine-store clothing chain, Transit Clothing.

Daniel Woodhouse and Ian Francis of the bankrupt company FTI Consulting launched a liquidation on the 15-year chain after yesterday they were appointed directors of the two companies behind Transit, GGA Lifestyle Pty Ltd and Doubleup Holdings Pty Ltd.

Transit Clothing sells casual wear, footwear and accessories focused on the youth and young adult market.

Its shops, which employ 45 people, are located in the main shopping centers of Perth and south-west of WA.

The chain will continue to trade but administrators will close four stores in the next four days to alleviate financial pressures on the business.

The retailer had 18 stores at its peak in 2011.

However, Mr. Woodhouse said the company has had to struggle recently to cover its rental and other costs, as consumer demand has declined significantly.

"Transit Clothing has been a successful retailer for a long time, with a significant store footprint, a wide range desired by the target market and a successful online presence," he said.

"Our appointment as directors will allow the business to breathe while we try to continue to trade the business, with most stores to stay open."

Mr Woodhouse said the liquidation sale, which has already begun, will offer discounts of up to 70 percent on a wide range of Transit stocks.

Transit's new direct factory at Perth Airport and its stores located at Dunsborough Centrepoint and Mandurah Forum will close their doors immediately, with Ocean Keys Clarkson following Saturday night.

Trade will continue in the shops of Lakeside Joondalup, Watertown Outlet, Westfield Carousel, Belmont Forum and Cockburn Gateway.

The collapse is the last of a string across Australia, as brick and mortar stores struggle with losing customers to online platforms and fragile discretionary spending.

The jeweler of the Perth landmark Rosendorff Diamond Jewelers started a $ 9 million clearance sale last week after going down late April.

. [TagsToTranslate] Business


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