Once The "King Of Jeans", JEANSWEST Went Bankrupt.

Speaking of clothing brands, many people may think of Adidas, Nike, Puma and other large international brands for the first time. But for some minority brands and some senior brands, they are ignorant. There is a brand that caters to the needs of young consumers from 1990s to early 2000 and fills the gap of the market. But in recent years, it has suffered losses for many years, but it has finally fallen to the point of bankruptcy. It is JEANSWEST.

It is noted that the Australian retail apparel brand JEANSWEST, founded in 1972, has announced its bankruptcy liquidation management process. It is reported that managers will study and restructure or sell all options of JEANSWEST, which will also seek strong buyers or investors at the same time. During the bankruptcy management process, JEANSWEST will continue to operate.

The popular tycoons were gradually abandoned by the times.

JEANSWEST (JEANSWEST) was founded in 1972 in Perth, Australia's fourth largest city, Perth. In 1990, it was bought back by its upstream suppliers, Yang Zhao and Yang Xun two, and soon became the second place in the Australian market.

In 2015, JEANSWEST was able to earn HK $7 million 550 thousand in pre tax market in Australia and New Zealand, but entered a huge loss of HK $80 million in 2016. Today, the company has 146 stores and 1000 employees in Australia, but it is the fate of bankruptcy reorganization to greet them.

In the Chinese market, JEANSWEST has a history of high gloss. In view of the bullish market in mainland China, the two brothers of Yang Zhao and Yang Xun opened the mainland's first store in Shanghai in 1993, backed by overseas background and Hongkong company's holdings. JEANSWEST rose rapidly in the Chinese market and became a "big crocodile" in the casual wear market. Up to now, there are more than 2000 chain stores and franchises in the country.

Publicly available data show that in 2013, it has opened 2500 stores nationwide, with sales of nearly 5 billion. Looking at it, all of China's streets and alleys are its shop tips.

This year, JEANSWEST boss Yang Zhao was elected chairman of the Chinese General Chamber of Commerce in Hongkong and became a flagman of Hongkong and mainland enterprises.

But the shift also occurred in 2013. This year, the scale of the electricity supplier industry has basically taken shape. ZARA, H&M, UNIQLO and a number of international fast fashion brands have also entered China, with cheap prices and fashionable styles favored by young people, and further grabbing the market of Chinese clothing brands.

By 2014, Taobao and Jingdong were listed on the market. Double eleven and 618 constantly refreshed the shopping Carnival record, which injected more vitality into the development of the electricity supplier industry. At this time, JEANSWEST shows the "Buddha system" attitude, everything that happens on the line has nothing to do with it, or is self complacent selling in physical stores. As a result, when the JEANSWEST reaction came, the online market could not make any room for them.

After 2013, it fell sharply, with sales ranging from 5 billion to 4 billion, 2 billion 800 million, 1 billion 900 million and 1 billion 600 million. In 2017, JEANSWEST lost 45 million 90 thousand for the whole year and closed more than 1300 stores in 4 years. As of June 2018, the number of JEANSWEST stores fell to 1164, shrunk by half over its peak.

As of 2019, JEANSWEST has opened more than 2000 chain stores in 20 provinces in China, but has laid off more than 6000 people and closed more than 1300 stores, with a 65% decline in performance. Silted stocks and high rents cannot support their normal operation.

In January 2020, JEANSWEST Australia announced its entry into bankruptcy liquidation management process.

Global apparel industry is facing severe winter

The times are always changing, and the clothing market has entered the "Red Sea" stage, and the dividends in the early stage are gradually wiped out. The rapid rise of electricity providers is also attacking traditional physical stores, and more and more consumers choose online shopping.

Faced with the great changes in the market, JEANSWEST's managers have not kept pace with the times, and have not improved their business philosophy. In the end, JEANSWEST lost its attraction to the core consumer groups.

The reputation of the "king of jeans" has gone through the clouds and is forgotten in the corner of memory.

In fact, since 2019, the Australian retail industry is facing a "collapse" crisis.

According to statistics, as of the end of 2019, there were more than 9100 stores closed in the whole Australian retail industry. At the end of last year, Australia's closed stores included many well-known brands at home and abroad, including retail stores including Sears, Kmarts, PartyCity, Walgreens, Barney and so on. Payless also means closing 2500 stores, which could be the largest retail settlement ever.

According to a number of Australian media reports, there will be more Australian local brands coming out of business in 2020.

In fact, not just Australia, the global garment industry is also experiencing a cold winter in the past two years. Vitoria's secret store closes 83 stores and stops its show. Burberry plans to close its 38 stores worldwide. Abercrombie & Fitch has closed 475 stores and plans to close 40 stores. GAP plans to close 230 stores in the next two years, and Forever21 has officially declared bankruptcy.

Domestic brands collectively feel cold in recent years

Not just JEANSWEST, Baleno, Giordano, Metersbonwe and other clothing brands that are selling well in the same period are constantly shrinking their businesses. From 2011 to 2016, Baleno closed 3000 stores in 6 years. Giordano, once known as the "GAP of Asia", is also moving away from the gold sector and closing the loss shop.

As a former "national first dress brand", La Natsu Bell is having a hard time. By the end of June 2019, the number of offline outlets in the company has decreased by more than 2400 compared with the end of 2018, representing a net decrease of 1/4 in the number of outlets and an average closing of 13 stores per day. In December last year, La Natsu Bell's wholly owned subsidiary, La Xia management company, will also have a 60% stake in the form of interindustry, which will be transferred at a transaction price of 1 yuan.

Known as the "BMW" in the field of women's shoes, Daphne is the 4000 largest one. Data show that in the first half of 2019, Daphne's net profit decreased by 825 million yuan, a decrease of 444.7% over the same period last year. In contrast to the decline in performance, Daphne international listed on the Hong Kong stock market was HK $11.172 higher (from April 2012 to HK $0.142). It fell all the way down to a minimum of HK $0.142, or about HK $99%. In November 13, 2019, Daphne's share price continued to go low, with a 4.03% drop in the intraday price.

Ask Lu Yi to speak of the tyrant "shoe king" - rich bird bankruptcy and delisting. In August 12, 2019, 3 years after the suspension, the lucky bird received the final notice of the stock exchange, and its listing status will be officially abolished in August 26th. Before the suspension, the rich bird quoted a price of HK $3.88, with a total market value of HK $51.89.

"Sports first share" - the default of the precious bird debt. On the evening of November 11, 2019, the announcement of the PPN001 announced that the "16 noble bird PPN001" with a bond value of 500 million could not pay the principal and interest in full and on time, which constituted a substantial breach. This is also the first time that you have default.