A wave of financial turmoil is sweeping through Australia’s fashion industry as several well-known local brands succumb to mounting debts and economic pressures. The combined impact of post-Covid tax liabilities and the rising cost of living has pushed a number of beloved Australian fashion chains to the brink, forcing many to enter administration or shut down entirely.
In recent months, household names such as Review Australia, Forever New, and Sportscraft have announced store closures and restructuring plans, sending shockwaves through the retail sector. Review Australia, known for its casual womenswear, went into voluntary administration earlier this year after struggling with high rents and falling sales. Forever New, a major player in women’s fashion, also faced financial difficulties as rising costs and supply chain disruptions squeezed profit margins.
Industry experts say this crisis is the result of a perfect storm of challenges. “The pandemic accelerated shifts in consumer behaviour, and many brands were left with unsold inventory and reduced foot traffic,” said Dr. Emily Carter, a retail analyst at the University of Sydney. “Post-pandemic, rising taxes and living expenses have further tightened consumer spending, making survival incredibly difficult for mid-tier fashion brands.”
The collapse of these brands is not only a blow to fashion lovers but also to thousands of employees and suppliers who rely on their continued operation. The Australian Retailers Association estimates that more than 5,000 retail jobs have been lost this year alone due to store closures and business failures.
Local consumers have expressed disappointment at seeing once-familiar brands vanish from shopping centres across the country. “It’s sad to lose brands that were part of our everyday lives,” said Jessica Lee, a Sydney-based shopper. “It also means fewer choices and less competition in the market.”
To combat the crisis, industry leaders are urging for targeted government support and innovative strategies, including embracing online retail, reducing overhead costs, and diversifying product ranges to appeal to changing consumer preferences.
“Without urgent action, we risk losing more iconic Australian brands,” warned Sarah Mitchell, CEO of Fashion Council Australia. “These businesses are a vital part of our economy and culture, and their survival depends on adapting quickly to the new retail environment.”
As the Australian fashion retail landscape undergoes significant change, consumers and industry stakeholders alike watch closely, hoping for a turnaround in fortunes for the country’s struggling brands.
