Tuesday, June 14, 2011

Colorado restructure leaves 1042 people without jobs

MORE than 1000 people are set to lose their jobs as 140 outlets in the Colorado clothing group close in a major restructure. 
The receivers of the Colorado Group, Ferrier Hodgson, say 100 underperforming Colorado stores in Australia will shut, along with nine Colorado stores in New Zealand, 21 Williams stores, seven Mathers stores, two JAG stores and one Diana Ferrari store.

Ferrier Hodgson's Brendan Richards said 1042 people would lose their jobs.
"The restructure of the group would eliminate the loss-making Colorado-branded stores and those other stores impacting on the profitability of the group," Mr Richards said in a statement today.
"The remaining brands and stores are all profitable and would form the cornerstone of the future business."

Mr Richards said the group was expected to generate earnings of about $19 million in 2011, and, following store closures, would become significantly more profitable.

No further store closures are anticipated.

Colorado-branded footwear will still be sold online and through 200 Mathers and Williams outlets.
The debt-ridden Colorado Group was placed in administration in March after lenders rejected a proposal to allow it to continue trading.

Colorado, which owes about $400 million to a syndicate of 18 financiers, has 434 stores across Australia and New Zealand and 3800 staff.

1 comment:

  1. sucks that people lose their jobs, but at the same time no economy can sustain unprofitable businesses, hopefully in time the jobs get replaced by something that can turn a profit