Fusion Retail Brand, formerly known as the Colorado Group, is putting the retailer back up for sale.
Receivers for the Colorado Group plan to close 140 underperforming stores as part of a proposal to improve the business.
Business information analysts IBISWorld have warned Zara's success in Australia is the exception to flat retail as more than a hundred fans of the Spanish chain waited hours this morning for the brand's first Melbourne store to open.
Receiver James Stewart said the group's decline in performance was largely driven by the poor performance of the Colorado-branded stores. The other brands are performing well given market conditions.