Business news : Bleach Group Placed In Voluntary Administration; Announces Restructuring Plan

Wednesday, 28th August 2013: Sydney-based fashion house Bleach Group today announced a recapitalization and restructuring plan that guarantees the future of iconic Australian denim label Ksubi and street/surf brand Insight, and establishes an international growth platform for both labels.

Under the restructuring plan Bleach Group, including the Ksubi, Insight and Something Else labels, and all of its 80 employees have been brought into new corporate ownership, following a share placement by a US private equity group.

The company that previously housed Bleach and its labels has been placed into voluntary administration, a move made necessary primarily because of the closure of Bleach Group’s major Asia-based supply chain/sourcing factory in May 2013.

With new offshore sourcing arrangements secured, supply of Ksubi and Insight apparel and fashion accessories into Australian and international outlets will resume from this month after a short delay, ensuring sale of new season stock will proceed as normal.

Bleach Group CEO, Mark Byers, said: “The restructure was necessary to ensure the future of the Ksubi and Insight brands and more than 100 jobs globally and we can now look forward with confidence. The need for a voluntary administration, which we attribute mainly to China supply chain problems, is regrettable. However, the outcome is a positive one for the Ksubi and Insight brands, our domestic and international employees, contractors and sub-contractors, retail and wholesale distribution partners, and the wider Australian fashion industry.

“With growing competition from international labels and online sales, and rising sourcing costs in Asia, it has been a difficult time for the fashion industry. Despite this, our brands had been performing well until the supply disruption. Both Ksubi and Insight are sought-after in the youth markets in Australia, Europe and the US – losing them would have been a blow to the Australian industry, and meant the loss of many direct and indirect jobs in Australia and overseas,” he said.

“Bleach has a very tight-knit workforce and we are relieved we could protect these jobs, while creating a platform for future growth,” Mr Byers said.

About Bleach:

Established in 2002 Bleach Group and its subsidiaries, designs, produces, and distributes fashion apparel and accessories in Australia, Europe, Asian and the US markets. The company distributes its fashion in Australia and internationally through either company owned and / or third-party distribution outlets consisting of independent retail stores, major account retail stores, department stores, and online, as well as through its seven franchised Ksubi retail stores.

By press release