Jeanswest sale: Jobs are 'anticipated to be preserved' following sale, administrators say

The sale this week is "anticipated to preserve" the jobs of workers across the region and Australia, administrators say.

The fashion chain went into voluntary administration in mid January, at the time it employed 988 staff and had a network of 146 stores nationwide,

A week later, administrators KPMG announced 37 stores would close, including the Mandurah store, with 263 employees to be made redundant.

On Tuesday, however, KPMG said a buyer had been found for the Australian operations of the retailer, with the sale is expected to be completed in mid-March and it will include up to 106 stores.

The sale is "anticipated to preserve the jobs of up to 680 Jeanswest employees" and is conditional on landlords agreeing to revised lease terms with the new owner, KPMG said.

KPMG restructuring partner James Stewart said he was delighted with the outcome for Jeanswest and the opportunity for staff to secure ongoing employment.

"This is a great result for all parties," he said.

The sale contract was signed on Monday with Harbour Guidance Pty Ltd, an Australian subsidiary of Harbour Guide Ltd, a Hong Kong company owned by Mr Chun Fan Yeung and his family interests. Mr Yeung is a minority shareholder in Howsea Ltd, the previous parent company of Jeanswest.

Harbour Guidance managing director George Yeung said the acquisition of Jeanswest would present an opportunity to "rejuvenate this iconic brand".

"We are committed to continue servicing Australian communities and grow the Jeanswest brand organically through an omnichannel service offering," he said.

Mr Stewart praised Jeanswest staff.

"Retail is a people business and the Administrators greatly appreciate the resilience of the Jeanswest staff through the administration process," he said.

The announcement follows struggles for other large retail chains including EB Games, Harris Scarfe, The Reject Shop, Target and Big W.