Fashion
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Ally Fashion has shut down, affecting up to 185 stores and more than 1,000 employees across Australia. The popular clothing retailer started in 2001 and grew to over 150 stores across New South Wales, Victoria, Queensland, South Australia, and the Northern Territory.

Court-ordered closure

The Federal Court of Australia on Friday ordered the company to close due to financial difficulties. The process began in November last year when Ginninderra Properties, a commercial property group, filed for the action, as stated in a public notice by the Australian Securities and Investments Commission.

BDO Sydney's Jeff Marsden and Duncan Clubb have been appointed as the liquidators to handle the closure, News AU reported. Just six days before its collapse, the company had posted on LinkedIn, announcing job openings for store managers and sales assistants.

Ally Fashion had also introduced a curvy clothing brand called You & All a few years ago, along with a maternity and childrenswear range named Mummy and Me. Three years ago, it also briefly tried selling menswear.

Industry woes

The closure comes at a tough time for the Australian fashion industry, which has been struggling, with several major retailers shutting down due to the rising cost of living.

Mosaic Brands, known for popular labels like Autograph, Noni B, Katies, Millers, and Rivers, also went into liquidation. The company was unable to find a buyer, leading to the closure of hundreds of stores.

Luxury fashion hit hard

Last year, Australian luxury fashion brand Harrolds shut down after nearly 40 years. The company blamed its collapse on lower luxury spending, fewer customers visiting stores, high office vacancies in city centers, and difficult government policies.

Another well-known Australian fashion brand, Dion Lee, also failed despite being worn by A-list celebrities like Taylor Swift and Dua Lipa. The brand had expanded to six stores in Australia and was selling in 160 locations worldwide before its closure.

Queensland University of Technology Business School retail expert Professor Gary Mortimer explained that Australians were spending less on non-essential items due to the cost-of-living crisis. Fashion, footwear, and accessories were among the industries most affected by this drop in spending.

Over the past six months, several brands under Mosaic Brands have shut down. The biggest concern is job losses, as thousands of workers have been affected.

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