Updated: 10:20 AEST
Footwear, clothing and accessories label Diana Ferrari has announced it is closing all of its stores, though will maintain an online presence.
“All Diana Ferrari stores will be closed over the coming months, but our fabulous footwear will continue to be available through our online stores, Mathers, Williams, wholesale stockists and major department stores,” the retailer said in a statement to its customers.
“We truly appreciate and thank all our loyal clothing customers over the last 17 years.”
The retailer’s Woden, Chatswood, Penrith and Hornsby locations will close on January 21, followed by Miranda and Knox the following week.
In June last year, Munro Footwear Group (MFG) acquired Fusion Retail Brands, which previously owned Diana Ferrari and other footwear chains including Colorado.
Following a number of high profile brands collapsing last year, 2018 is already off to a bumpy start with Maggie T entering into administration, and Diana Ferrari announcing that it will be closing all of its physical stores in the coming months – painting a gloomy picture for Australian retailers according to Andrew Spring, partner at insolvency firm Jirsch Sutherland.
“This news shows that well-known brands are surrendering to the mounting pressure faced by traditional bricks and mortar operations,” he said.
“As the online retail marketplace expands and traditional geographical barriers to entry are removed, Aussie retailers are dealing with more competition than ever before. And those retailers that have failed to evolve by investing in their e-commerce platforms, will continue to feel the pain this year as they find the costs of a having a bricks and mortar store too high.
“It also particularly difficult on retailers when they are committed to leases and staff, and they’re locked in. Other key contributors include obsolete stock issues, and poor record keeping.
“We predict that we haven’t seen the worst of retail woes and that 2018 will unfortunately see many more homegrown brands go into insolvency.”
Read more in this week’s magazine including why MFG CEO Jay Munro took the “difficult decision” for the iconic Aussie brand to end its physical presence.
Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.
