Troubled Australian luxury handbag retailer Oroton Group has gone into voluntary administration. Photo / 123RF
Troubled Australian luxury handbag retailer Oroton Group has gone into voluntary administration. Photo / 123RF
Australia's 79-year-old luxury handbag retailer Oroton has collapsed into voluntary administration after failing to find a buyer.
The company says it was unable to find a viable option for recapitalising or selling the business following a seven-month strategic review.
Interim chief executive Ross Lane said there was no other solutionthat could achieve a better outcome than voluntary administration.
"The board is disappointed that it has had to take this step after running such a comprehensive process," he said in a statement to the ASX.
"However, having carefully considered the options available to the Company at the conclusion of its strategic review, it is apparent that voluntary administration is necessary to protect the Oroton business and the future of this iconic Australian brand."
Administrator Vaughan Strawbridge from Deloitte Restructuring Services said the business will continue to operate as he seeks a recapitalisation and sale of the brand.
Oroton sank to a $14.3 million full-year loss in the year to July 29, compared to a $3.4m profit the previous year.
