Jeanswest saved as former owner buys company back

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Fashion brand Jeanswest has been saved from the executioner's axe, with the company's former owners buying the business back following the closure of 37 stores

Administrators from KPMG announced on Tuesday morning a sale contract was signed on Monday with Harbour Guidance Pty Ltd, the Australian subsidiary of Hong Kong-based company Harbour Guide Pty Ltd, owned by Mr Chun Fan Yeung.Chris Lane

"The acquisition of Jeanswest business will present an opportunity to rejuvenate this iconic brand well known to the Australian community," he said. Administrator James Stewart said it was relatively uncommon for related parties or former owners to buy businesses out of administration, but said it was a good thing for the company.

Final confirmation of the deal is subject to Jeanswest's landlords agreeing the newly negotiated lease terms with Harbour Guidance. The company had been negotiating discounted rents with landlords in the months leading up to its collapse, but it was not enough to save the business from falling into administration.

 

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