Fashion Brand Lisa Ho collapses

  Delta Goodrem may find other designers for his suit pants controversial after designer Lisa Ho plunged into administration last week.

The Company agrees to go under, as they struggle in difficult trading conditions on a growing list of Australian fashion retailers. Since the global financial crisis, Colorado, Brown Sugar, Bettina Liano, Ojay and hypermarket shoes have all closed.

Local retailers are not only competing with online stores, but a number of international fashion chains have recently hired a business in Australia, including Topshop and Zara.

There is less than a month, Lisa Ho designs examining an IPO on the National Stock Exchange, which later in favor of the prosecution of a case of private equity was abandoned. The company serves 10 flagship stores, shop online and outlets with David Jones (DJS.AX) department stores.

"However, the premium fashion is under pressure from online sales, such as the retail of fashion changes to the market's expectations and requirements, to reduce costs," the company has warning. Accounts show Lisa Ho designs a loss last year of $ 2.4 million, which was attributable strategic errors, so there is too much clothing in spring / summer and not enough for making winter / autumn next season.

The management does not necessarily mean the end of the fashion house of 30 years. Administrator HLB Mann Judd says he will go through the assets of the company and are looking for a buyer, but in the meantime, all the shops will continue to trade.

The most likely buyer would be David Jones, Myer Holdings (MYR.AX) or even prime investment Solomon Lew (PMV.AX). All three are, to develop their own brands, and reduce their dependence on offshore designer.

Foolish take

For the reincarnation of a number of Australian fashion brands, including Charlie Brown, sitting and waiting, Bettina Liano and Lisa Ho designs Tsubi has a good chance born again. But it is rather part of a large stable of brands, instead of being an independent retailer.

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