'Heavy heart': Popular Australian fashion brand Alice McCall goes under

Alice McCall said it's with a "heavy heart" that the business has gone bust. Photo / Getty Images

Australian fashion brand Alice McCall has gone into voluntary administration as the company wrangled with COVID-19 financial woes.

The designer joins several other retail businesses to enter administration in the past year, including Seafolly , Kikki K, Jeanswest and Bardot. A few of these retailers, including Seafolly and Jeanswest, were lucky to be bought out and saved from collapse.

Ms McCall confirmed the business went into administration on Monday, with Sydney-based insolvency firm SVPartners appointed to handle the process.

This will likely result in the closure of several of the brand's 14 stores across Australia.

Meanwhile, the brand's bricks-and-mortar stores and online shop are still currently trading as normal.

Ms McCall said in a statement it was with a "heavy heart" that the company called in administrators.

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“There is nothing that fuels me more than a customer sharing their experience of a meaningful memory that they have lived whilst wearing an alice garment. This truly is what motivates me to do what I do.” - Alice McCall It is with a heavy heart and deep sadness that we have made the decision to go into voluntary administration due to the financial impact we have experienced throughout the COVID-19 pandemic. We have closed a number of our brick and mortar stores in this process, but are keeping our Westfield Sydney, Emporium Melbourne and QueensPlaza Brisbane boutiques operating and open for our customers. Our online boutique remains open 24/7 and we have the team in place to ensure all online purchases are adhered to in a timely fashion. Over the next week during this transitional phase, please allow for shipping delays of 5-7 days. We want to assure all of our customers that we are still here for you and will continue to trade out of our three flagship stores and online boutique. We are working with administrators in monitoring the business whilst working towards an outcome which will be to benefit all parties. While this is a tough and challenging time, we thank all of our loyal customers, team, stakeholders, friends and families for their ongoing support and love. If you have any concerns at all, please feel free to reach out to us at hello@alicemccall.com.

A post shared by alice McCALL (@alicemccallptyltd) on Nov 9, 2020 at 8:34pm PST

"Due to the unprecedented effects that COVID-19 has had on our economy, as well as some unsustainable bricks and mortar rental obligations, I have had to make a necessary decision to edit down my business, with the objective of building a more sustainable business model for the future," she said.

The designer thanked her staff and customers. "There is nothing that fuels me more than a customer sharing their experience of a meaningful memory that they have lived while wearing an 'Alice' garment," she said. "This truly is what motivates me to do what I do."

SVPartners' Ian Purchas said a number of stores will be forced to closed and some of its workers will lose their jobs as the company's revenue was "severely impacted".

"Unfortunately that will require the closure of a number of its stores, and the redundancy of some employees," Mr Purchas said in a statement.

"These steps have not been taken lightly, but have been necessary to give the company the best chance of survival whilst retaining a large number of its team and providing a return to its creditors. The details of same will be dealt with during the Administration and advised to creditors as required by the legislation.

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Floating flowers • @lilymaymac wears the Midnight Caller Playsuit • new online & in boutiques • #aliceMcCALL

A post shared by alice McCALL (@alicemccallptyltd) on Oct 31, 2020 at 4:21pm PDT

The brand launched at Mercedes-Benz Fashion Week Australia in 2004.

In 2009, Ms McCall launched a complimentary online store and the business expanded internationally, including a strong following in China.

The global expansion included launching a dedicated e-commerce site in China to complement the bricks-and-mortar store that opened in the country.

McCall was the first Australian brand to launch a physical store in China, but the store has since closed.