Fashion designer Lisa Ho’s company will shut its doors after administrators failed to find a buyer of her business; “Lisa Ho is an iconic Australian fashion brand and one of the bastions of fashion landscape in last 30 years”

Lisa Ho to close its doors forever

by: By Melissa Hoyer

From:news.com.au

June 18, 2013 1:18PM

Fashion designer Lisa Ho’s (L) label is reportedly riddled with $11m in debt.

WELL-REGARDED industry stalwart and a star performance at the recent Australian fashion week weren’t enough to keep designer brand Lisa Ho in business, with stores set to close.

Today, administrators for the Lisa Ho Group, Barry Taylor and Todd Gammel of HLB Mann Judd, announced that despite considerable interest, ‘a sale of the Lisa Ho Group business as a going concern has not been achieved within the sale program’.

Discussions are continuing with a number of interested parties in relation to the purchase of intellectual property, stock and other assets of the Lisa Ho Group.

“The Administrators are now focused on an orderly closure of the remaining Lisa Ho Group stores.”

For the past 30 years the Lisa Ho label followed a modern, fashion-now aesthetic but like most fashion retailers, particularly following the GFC, there has been thwarted demand growth and increased competition of numerous online retailers.Major competition has also been seen from the likes of Zara and Top Shop, whose ‘fast fashion’ and affordable designs has resonated with Australians, making many local designers fear for their fashion livelihood.

A final sale at Lisa Ho stores is now underway, with stores expected to close at the end of June.

The announcement comes just months after the fashion retailer announced plans to list on the Australian Securities Exchange, although the label is reportedly riddled with $11 million of debt.

After going into administration on May 8, the brand failed to attract buyers, but as recently as last week were reportedly close to signing a deal that could have seen the Apparel Group take over.

The privately owned Apparel Group, which currently operates the Willow, Saba and Sportscraft clothing brands, was rumoured to have edged out Myer in negotiations.

The Ho fashion house went in to voluntary administration last month after having recorded a loss of $2.4 million in the last financial year and since then, six of the 10 Lisa Ho stores have been closed down, as well as one clearance store.

It follows others including Bettina Liano, Sass & Bide, Herringbone and Charlie Brown who have fought their way out of financial trouble.

Lisa Ho Designs calls in the administrators

Published 13 May 2013 14:22, Updated 18 June 2013 14:05

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This is not necessarily the end for Lisa Ho, whose eponymous label has called in the administrators. Photo: Domino Postiglione

Lisa Ho Designs is the latest Australian retailer to get the vultures circling, with the high end fashion chain placed into administration last week.

But it doesn’t mean the end for the 30-year old design house.

Financial firm HLB Mann Judd has confirmed it was appointed as administrator of the high-end fashion chain last Wednesday. The administrator will go through the company’s assets and look for a buyer. A creditors’ meeting is scheduled for May 20, and in the meantime all 10 stores will reportedly continue to trade.

HLB’s head of the Business Recovery and Insolvency team Barry Taylor says they are hoping for a lot of interest from buyers.

“We will be running an expressions of interest campaign for the business and assets within the next couple of days,” Mr Taylor says.

Local retailers are not only competing with online retailers but also new international stores, such as Topshop, Zara and Pottery Barn, setting up bricks and mortar stores in Australia.

Retail experts say being placed into administration doesn’t necessarily spell disaster for Lisa Ho Designs, which in April flagged plans to list on the stock exchange. The appointment of an administrator has obviously stalled the IPO.

Nerida Jenkins, a director at Sydney-based consultancy firm Retail Oasis, says she would be surprised if this was the end for Lisa Ho.

“Lisa Ho is an iconic Australian fashion brand and one of the bastions of fashion landscape in last 30 years,” Jenkins says.

“I would be surprised if investors in the fashion market let Lisa Ho fall away because there is too much equity in the brand. It would be an attractive acquisition option.”

The brand’s good relationship with David Jones is another saviour. Jenkins says the ccompany will need to optimise that relationship now.

Jenkins names other local retailers who have used the administration process to rebirth their brand.

“Wayne Cooper and quite a number of retailers that have gone through administration have come out the other side. Jag Jeans, which was owned by Colorado Group, saw administrators buy the brand and create a new company called Fusion Brands,” she says.

As well as an online shop and David Jones, Lisa Ho Designs operates 10 stores nationwide. Exorbitant rent is another reason that local retailers close up shop.

The next step is that the administrator will go through the company’s assets and look for a buyer. A creditors’ meeting is scheduled for May 20, and in the meantime all 10 stores will reportedly continue to trade.

Jenkins says reducing the store footprint to just a couple of flagship stores and boosting its online presence would be one way

Lisa Ho declined to comment.

Lisa Ho shuts up shop

JENNA CLARKE

Last updated 16:20 18/06/2013

Fashion designer Lisa Ho is closing down.

Administrators HLB Mann Judd issued a statement today announcing the end of the Australian fashion queen’s 30-year reign.

“Despite considerable interest, a sale of the Lisa Ho Group business as a going concern has not been achieved within the sale programme.”

While there were whispers and numerous reports of interested buyers, including Myer and the Apparel Group – owners of the Sportscraft and Saba labels – administrators have been unable to salvage the Lisa Ho business in its entirety and are now closing the remaining stand-alone stores around the country.

“There is a difficultly in retail at the moment and a lot of other retailers are in a similar position but there was and still is a lot of love for the Lisa Ho brand. We still have parties interested in the intellectual property and remaining stock,” HLB Mann Judd’s Todd Gammel told Fairfax.

“Lisa is working through her own issues. She’s been in discussions with us and she is still interested in getting her brand back.”

“We don’t know where it’s going to get to in terms of the stock so we’ve just got to go ahead with what we can do. We would be trying for everybody to give us a view in the next few days around that so we can see if we can get some of the employees and retail away otherwise it’s going to go through the normal closing down process,” Gammel said.

Sales at the online store, Sydney, Melbourne and Brisbane boutiques are now underway until June 30.

Current stock, bridal and evening wear has been reduced by more than 50 per cent.

“It’s a great chance to buy an iconic piece of Australian fashion. There are now A$10,000 ($12,527) gowns being reduced to A$3000,” Gammel said.

Prior to being placed in administration on May 8 with debts of more than A$10 million, there were plans for Lisa Ho Designs to be listed on the stock exchange.

Ho started her career at a Sydney market in the early 1980s.

Over the years her designs have been worn by models-turned-mogels Tyra Banks and Elle Macpherson as well as singers Florence Welsh and Nicole Scherzinger. Lisa Ho has been a red carpet staple spotted at numerous film premieres and awards ceremonies both in Australia and overseas.

Australia fashion leaders were saddened by the news.

“Personally, Lisa Ho is a dear friend who I have always admired as she built her fashion brand from a small store at Paddington markets into an iconic fashion label, so it is really devastating to see a fashion pioneer like Lisa fall on tough times,” Harper’s BAZAAR editor Kellie Hush said.

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“Like many Australian women, I have loved and worn Lisa Ho for decades as she has always created fashion women want to wear. I know this is not the final chapter for Lisa as she is an inspirational business woman and look forward to seeing what she does next.”

Lisa Ho was unavailable for comment.