Herringbone Retail has gone into voluntary administration as a result of a recent slump in sales and a corresponding downturn in forecasts for the balance of the calendar year.
The company says the fall in sales is the direct result of the current global financial crisis, and consequential cuts in household retail spending.
Martin Green of BRI Ferrier was yesterday appointed as voluntary administrator of Herringbone Retail Pty Limited and Herringbone Staff Pty Limited.
Herringbone sales for the last two months were approximately 23 per cent below the corresponding period last year.
Herringbone operates 13 retail stores throughout New South Wales, the Australian Capital Territory, Queensland and Victoria.
Green’s immediate plan is to continue to operate all stores on a ‘business as usual’ basis, while negotiating with potential buyers to purchase the Herringbone business and parties interested in injecting required capital.
He is in discussions with Herringbone’s bankers, and is seeking their support to continue the business. Expressions of interest are being sought from interested parties either to purchase the Herringbone business as a going concern or to recapitalise the existing business.
The first meeting of creditors of Herringbone is scheduled to take place on 17 December 2008.
Herringbone Leasing Pty Limited is currently unaffected by the appointment of the administrator to the other Herringbone companies.