An independent Australian e-commerce fashion platform has become the latest casualty of the economic downturn.
Online store Australianmadeclothes.com.au announced to its 44,000 followers earlier this week that it was closing down.
The business supported independent Australian fashion designers by selling their locally-made products, with clothing options for men, women and children.
Australian Made Clothes is now holding a closing down sale but emphasised that all orders will be filled and delivered before it shuts its virtual doors forever.
Its last day appears to be on Thursday this week.
The owner, James Bennett, said in various social media posts “sorry, we’re closing down. We simply can’t continue operating”.
He said “numerous challenges … ultimately led to the difficult decision to cease operations” including increased competition from overseas retailers, worsening market conditions and the flow-on effects of the pandemic.
“It has been an incredible journey, and we are immensely proud to have served as a platform for Australian Made Clothes. We are grateful to our dedicated customers who have been with us on this journey. Thank you all so much,” Mr Bennett added in his statement.
According to Mr Bennett’s LinkedIn profile, Australian Made Clothes had only been in operation since late 2020.
In the weeks and months leading up to the firm’s demise, social media posts appear to show it becoming increasingly desperate to drum up business.
In April, Australian Made Clothes was offering up to 60 per cent off in a flash sale.
The outlet also put out a post encouraging everyone to spend $10 to support struggling businesses.
“Australians could boost the economy by spending just $10 each, while supporting businesses that sell quality products,” the post, dated back to May, read.
“Around $4.8 billion could be injected back into Australia’s economy and add up to 9500 new jobs could be created if households spent an additional $10 a week on ‘Australian made’ products, according to Roy Morgan research.”
These attempts were sadly not enough to save the floundering business.
News.com.au contacted Australian Made Clothes for further comment.
It comes as a number of retailers have been left with little choice but to shut down as interest rate rises drives Australians to tighten their purse strings.
Two weeks ago, news.com.au reported on another independent retailer, called Design A Space, which also collapsed as a result of the nation’s struggling retail sector.
Victorian business Design A Space had been stocking homemade jewellery, clothes and art from more than 170 independent designers across Australia since 2006.
However, last month it announced it was closing down, with July 15 slated to be its last day in existence.
Also last month, popular US shoe brand Rockport, which sold its products through Australian retailers including The Athlete’s Foot and David Jones, filed Chapter 11 bankruptcy proceedings.
In April, clothes seller EziBuy, which had an online presence across Australia and New Zealand, also went into voluntary administration.
The retailer had suffered a 51 per cent decline in sales from June to December last year.
Iconic music and entertainment retailer Sanity shut down all 50 of its stores across Australia at the end of March, as the pandemic took a toll on the business, although it continues operate in a digital space.
In February, Australian prestige clothes firm Alice McCall went into liquidation. News.com.au reported that the company owes $1 million to creditors.
Then in January, furniture seller Brosa fell into liquidation after its restructuring attempt failed, leaving behind debts of $24 million, including $10 million to customers from unfulfilled orders.
In July last year, trendy sunglasses business Soda Shades also went into administration owing $2.3 million, and just a week before, sneaker company Sneakerboy also folded with $17.2 million owed to more than 100 creditors.
Online fashion giant Missguided also had no choice but to call in administrators after failing to secure a rescue bid, with big name brands like The Iconic and Myer selling its wares prior to its collapse.
Even major retailers like David Jones are struggling. The department store chain recorded a double-digit downturn in sales at its city, suburban and regional stores in June, following the wake of the Reserve Bank’s decision to hike the official interest rate even higher in May.