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Published
Nov 10, 2016
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American Apparel to shutter Australia stores, stops online presence

Published
Nov 10, 2016

American Apparel's Australian arm has gone into voluntary administration with stores set to close within a matter of weeks, following the brand's termination of its Australian online store.

According to local media, administrator McGrathNicol took control of the youth retailer's Australian operations Wednesday morning, informing employees in its three Australian stores - Melbourne, Sydney and Adelaide - that stock would be liquidated.


American Apparel Australia enters voluntary administration



“The Director took the decision to appoint Voluntary Administrators in response to the decision of the American parent company to stop supporting a number of the American Apparel businesses outside of the US, including the Australian business. As a result the Australian business no longer had access to stock or funding,” a spokeswoman for McGrathNicol told the Daily Telegraph.

​“The Voluntary Administrators intend to clear the stock in Australia through the three stores in Sydney, Melbourne and Adelaide over the coming few weeks, after which the stores will be closed.”

The Los Angeles, California-based brand's Australian website has also been shutdown prohibiting any business activity.

Replacing the Made In America clothing which was previously available for purchase in Australia, American Apparel posted the following message on its non-operational e-commerce store: "American Apparel will no longer maintain an online presence in Australia. We would like to express our gratitude to you for your business."

In line with the administration path, up to 100 employees may lose their jobs when the stores close following the sales, said the Telegraph.

On Tuesday American Apparel’s UK and Irish businesses also went into administration.
 

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