BREAKING: Major Australian retail group, Oroton has gone into voluntary administration after shocking losses
The company is 79-years-old
The luxury handbag retailer lost a reported $14 million this year and announced on Thursday morning it was unable to find an option for selling or recapitalising.
The 79-year-old company have come out of a eight-month strategy review.
A statement was released showing interim chief executive, Ross Lane, explaining that there was no other solution:
“The board is disappointed that it has had to take this step after running such a comprehensive process.
“However, having carefully considered the options available to the Company at the conclusion of its strategic review, it is apparent that voluntary administration is necessary to protect the Oroton business and the future of this iconic Australian brand.
“The 59 Oroton stores will continue to trade as usual, while administrators Deloitte Restructuring Services pursue a sale or a recapitalisation.”
Rose Byrne was named as the face of the brand back in 2014, however she was dropped in March this year for younger and cheaper influences. This sparked the discussion that the brand was under some stress.
The company's shares went into a trading halt on Tuesday. It has been reported that the shares have been falling from $7.80 in early 2013, $2.44 a year ago and closing at 43 cents on Monday.
“It is apparent that voluntary administration is necessary to protect the Oroton business and the future of this iconic Australian brand.”
Getty images/Lisa Maree Williams and Jeff Greenberg
ENOUGH WORDS! RELAX YOUR EYEBALLS WITH THIS VIDEO
Smallzy has Rita Ora play 'Name Droppers' at Nova’s Red Room unlocked by Vodafone