TROUBLED retailer Oroton Group has slumped into administration. Now people are snapping up heavily discounted items.
LUXURY handbag maker Oroton has collapsed, becoming the nation’s latest retail victim.
The listed luxury retailer, whose most recent public face has been Aussie actor Rose Byrne, announced this morning is was placing itself in voluntary administration.
Since the announcement was made, people have been hitting the label’s outlet website to snap up heavily discounted items.
The large Melanie tote was $595 but is on sale for $116.
The Signature O Baby Bag was $495 and is now $148.50.
Many people are posting links to friends and loved ones on Facebook to suggest which items they would like for Christmas.
For a period of time the website could not cope with demand and crashed, displaying an error message.
Interim chief executive Ross Lane said there was no other solution that could achieve a better outcome after efforts to recapitalise or sell the 79-year-old retailer failed.
OrotonGroup shares in trading halt as earnings deteriorate
“The board is disappointed that it has had to take this step after running such a comprehensive process,” he said in a statement lodged with the Australian Securities Exchange.
“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.”
Administrator Vaughan Strawbridge from Deloitte Restructuring Services said the business would continue to operate as he sought a recapitalisation and sale of the brand.
Oroton sank to a $14.3 million full-year loss in the year to July 29, compared to a $3.4 million profit the previous year.
The group’s shares were suspended from trade on Tuesday ahead of the announcement today.
Oroton becomes the latest traditional bricks-and-mortar retailer to face ruin as international brands enter the nation and new online competitors emerge.
Topshop and Topman Australia, Marcs, David Lawrence, Herringbone, Rhodes & Beckett, Pumpkin Patch and Payless Shoes have all collapsed over the past two years.
Myer and David Jones are both losing sales while Speciality Fashion Group, whose stable of brands includes Katies, Millers and Rivers is in the process of closing more than 300 stores.