Ksubi fashion label in administration

The Australian company behind local denim fashion label ksubi has been placed into
voluntary administration to help ensure its future.
Co-founders Dan Single and George Gorrow said they had been "struggling to achieve
the margin necessary to fund the growth and development of the brand".
Voluntary administration was the "only way to ensure the future of ksubi", they said
in a statement.
"We are and will remain fully committed to the ksubi brand and in assisting the
administrator to achieve the best possible outcome," they said on Monday.
The pair said there had been "significant attempts" in recent times to address
ksubi's financial difficulties.
These had included "licensing the manufacturing and distribution of the brand to a
culturally aligned, Australian-based company with overseas production experience and
networks".
"However, despite best efforts it has not been possible to formalise a new
restructure leading to the appointment of an administrator," the pair said.
"ksubi is grateful for the loyalty shown by its suppliers through this difficult
period."
The ksubi label, created in 2000, is well known for its jeans and denim range.
There are three ksubi stores in Australia and one in New York.
The company employs about 20 people.
The label would go into voluntary administration as part of a restructure of the
Tsubi Pty Ltd group of companies, they said.
Paul Billingham and Said Jahani of Grant Thornton Australia were appointed
administrators.
Mr Billingham said in a statement it was "business as usual" for ksubi.
"Our job is to try and preserve the inherent value of the business and we will be
working closely with the directors and key stakeholders to do this," Mr Billingham
said in a statement.
"For the time being, all ksubi's stores will remain open."
It was understood that Westpac had pushed for administrators to be appointed.
Last year, ksubi was believed to be in the market trying to find a buyer, but was
unsuccessful.