25 October 2018

Administrators of the Roger David chain of clothing stores have been stunned by the loyalty and support shown by customers and staff after the group went into administration last week.

Sales have more than doubled in the past week as customers have responded to the 50% sale.

Administrator Craig Shepard of KordaMentha Restructuring said the sale was intended to raise as much cash as soon as possible to help pay employee entitlements and creditors pending a closedown.

“But it has turned into something much bigger than that. It has brought out an amazing wave of support and loyalty for a household Aussie brand.  Employees who were staring unemployment in the face have shown amazing loyalty and are helping to push sales.

“The response has encouraged us to roll out large volumes of summer stock into the stores.

“There is now a possibility that there may be a buyer. Expressions of interest have been coming from interested parties who were shying away a few weeks ago. They have seen the outpouring of support for the brand on social media and in the stores. They are having a second look.

“We will assess all the options and have an update for creditors at their first meeting next week.”

Directors of the 74-year-old chain placed the group into administration last Thursday after struggling to cope with foreign competition, rising fixed costs and soft retail conditions. The company had been seeking other options including a sale of the business but there was little interest at that stage.
 

Media Contact: 

Michael Smith 
Inside Public Relations 
0411 055 306 | [email protected]

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KordaMentha Restructuring works with companies in financial distress – to restructure and to stabilise the business or to recover value on behalf of stakeholders.