Popular jewellery and bag companies Colette and The Daily Edited have fallen into voluntary administration, as their umbrella company Marquee Retail Group tries to salvage their business during cost of living pressures.
MRG, which owns the popular accessory brands Colette by Colette Hayman and The Daily Edited, stated the business had suffered from the unplanned downturn in sales from October 2023 to March 2024.
The brand explained this loss resulted from rising inflation and increased interest rates.
The business was also undertaking an ongoing debt arrangement with the ATO, which dates from the Covid-induced drop in sales.
The board of directors at MRG appointed Domenic Calabretta, Mitchell Ball and Richard Lawrence of Mackay Goodwin as voluntary administrators on Wednesday.
“Our decision today is about securing the future of the Marquee Retail Group and its employees, while emerging on the other side of voluntary administration,” MRG chairman Bernie Brookes said.
“We hope to work with all parties to ensure an outcome, either with a sale or a deed of company arrangement recommended in time by the administrator.
“The board of directors regret that these events have come to pass and acknowledge all the group’s employees for their hard work and contribution.”
Mr Brookes said customers would not see any changes within stores as the business continued to operate under its new management structure, with all stores expected to remain open and no plans to reduce staff numbers at this stage.
“For our customers, everything will remain consistent as our stores continue to operate and receive regular stock,” he said.
“As for our staff, their routine remains unchanged until the administrator decides upon an outcome and a way forward.”
In a statement on Wednesday, MRG confirmed it was exploring “the potential sale of the business (whole or in part) as part of its strategic options”.