The 79-year-old luxury handbag retailer has struggled financially in sales, resulting in $14.3 million in losses last year according to The Herald. This was compared to a $3.4 million profit the previous year.
The company revealed this morning that an eight-month strategic review failed to find a "viable option" to secure its future. In a statement to the ASX, OrotonGroup interim chief executive Ross Lane said:
“We have made every effort to avoid taking this decision but have been unable to source a viable solution which could achieve a better outcome than voluntary administration. The board is disappointed that it has had to take this step after running such a comprehensive process. However, having carefully considered the options available to the company at the conclusion of its strategic review, it is apparent that voluntary administration is necessary to protect the Oroton business and the future of this iconic Australian brand.”
The brand's 59 Oroton stores will continue to operate as usual while administrators Deloitte Restructuring Services pursue a sale or a recapitalisation, reports the Sydney Morning Herald.
Administrator Vaughan Strawbridge said the focus would be “on continuing to operate the business, as we seek a recapitalisation or sale of this iconic brand”.
“The flexibility of the voluntary administration process enhances the ability to further restructure OrotonGroup in a manner which makes it possible to achieve the best possible outcome in these circumstances,” he said. “Our ambition is that a stronger Oroton business will emerge from this process.”
This article originally appeared on InStyle Australia