Ginger & Smart exists administration
Fashion label Ginger & Smart has exited administration in less than a month, following a period of prolonged closures due to the COVID-19 pandemic.
Creditors approved the company’s deed of company arrangement, which releases the company from its leases at various locations, including The Strand Arcade and Sydney’s Westfield.
The company was founded in the early 2000s by sisters Genevieve and Alexandra Smart. It was acquired by Alquemie Group in April 2019.
Richard Facioni, the company’s executive chairman, is a secured creditor with a significant portion of Ginger & Smart’s assets. Alquemie also holds licensing agreements with companies such as Pumpkin Patch and Lego Australia.
The company is managed by ACTA Capital, a specialist private equity firm that focuses on investing in consumer brands and retailers.
The company’s voluntary administration allowed the group to exit its leases and negotiate with its landlords regarding the COVID-19 relief packages.
In October 2021, the company experienced a second lockdown and during this time the landlords did not provide the same level of support during the period.
As a result of the outbreak, the company’s leases were becoming more expensive and the company decided to exit its leases after consulting with its landlords. The outbreak affected both consumer sentiment and the company’s logistical capabilities.
Before the outbreak, the company operated five standalone stores in New South Wales and Victoria. It also has seven concession locations that are operated by David Jones. These stores, along with its online operations, will continue to operate.
The company’s deeds of company arrangement released the company from its leases. Its trade creditors and its landlords will receive 20 cents on the dollar.
According to the administrators, Alquemie is owed over $2.5 million. It also has a debt facility with Alceon.
The company’s debts to Alceon are estimated at around $8 million. However, it noted that it would participate in the debt forgiveness program known as the DOCA.
In the year to March 22, sales at the company reached $4.7 million, which is a significant increase from the previous year’s sales of $7.4 million.
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