Yahoo Finance 500 Roger David workers to lose jobs by Christmas
Embattled menswear retailer Roger David is set to close its 57 stores within weeks after a four-week buyer search reaped no results.
The company employs 300 full-time staff and nearly 200 casual and part-time staff, administrator at KordaMentha Restructuring, Craig Shepard said today.
“Everyone recognised the strength and the affection for the brand, but it did not pass the viability test,” Mr Shepard said.
Also read: Are Australian retail businesses in trouble?
“Roger David was a victim of rising fixed costs, fierce competition from online and global competitors and cautious consumer demand.”
Shepard said the remaining stock will be priced to clear, with all stores in the 76-year-old chain to shut by mid-December.
“The employees and customers have been remarkable in the past four weeks to help provide the company with cash flow to help pay entitlements and creditors. Discounts of 60 per cent or more will continue until the last day,” Shepard said.
Roger David entered voluntary administration in October
Trouble at Roger David was confirmed on 18 October when the company entered voluntary administration.
At the time, the company’s directors blamed e-commerce and fierce competition for the challenges.
“Despite the directors’ best efforts with the business, it simply could not compete with the influx of multinational retailers and the rapid, global evolution of online shopping,” the statement said.
Also read: Competition heats up as Amazon Australia breaks into fashion sector
“Roger David grew into the third-largest specialty menswear chain in Australia and the directors are incredibly proud of what has been achieved over the last 76 years.”
Amazon heats up competition
Roger David’s fall comes in the same week as Amazon Australia pushed into the fashion sector.
The global juggernaut announced the launch of Amazon Fashion on Tuesday morning and will feature more than 150 fashion brands.
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