Alice McCall driven into voluntary administration by coronavirus
COVID-19 has taken out another Australian retailer, with fashion designer Alice McCall going into voluntary administration.
The announcement, confirmed today by the designer's spokeswoman, likely signals the closure of 14 stores.
For now, all stores and Ms McCall's online business will continue to trade.
Ms McCall said the downturn in business had hit her hard and it was with "a heavy heart" she had gone into administration.
"Due to the unprecedented effects that COVID-19 has had on our economy, as well as some unsustainable bricks and mortar rental obligations, I have had to make a necessary decision to edit down my business, with the objective of building a more sustainable business model for the future," she said in a statement.
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She still had "plenty of drive" to continue to create, she said.
"I intend to only get better, armed with the experience of 17 years of business under my belt, and the desire to keep on creating."
The designer-to-the stars made a name for herself with her feminine playsuits, worn by none-other than Beyonce.
Since launching two decades ago, Ms McCall's clothes have also been worn by Kylie Minogue, Kendall Jenner and Cara Delevingne.
Sydney-based insolvency firm SVPartners said the number of stores closures and staff redundancies was still being calculated.
Going into administration was a "responsible" decision, SVPartners said.
"Unfortunately that will require the closure of a number of its stores, and the redundancy of some employees," SVP Partners said.
"These steps have not been taken lightly, but have been necessary to give the company the best chance of survival whilst retaining a large number of its team and providing a return to its creditors."
This year has been brutal for retailers.
Stationery giant kikki.K, bikini icon Seafolly and Jeanswest are among those who have collapsed into voluntary administration.