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Australian fashion retail in freefall: Another beloved brand bites the dust owing millions

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Australian fashion retail in freefall: Another beloved brand bites the dust owing millions

Screenshot 2025-09-30 at 09.02.39.png Australian fashion retail in freefall: Another beloved brand bites the dust owing millions
Desordre's collapse owing $2.4 million to creditors is just the latest in a string of Australian fashion retail failures that's left thousands jobless and millions in debt. Image source: @desordreboutique / Instagram.

When you think about the Australian fashion landscape, it's hard to ignore the growing pile of 'closing down' signs.



The latest casualty? Desordre, a Sydney fashion favourite that's just collapsed owing a staggering $2.4 million to creditors—and it's not alone in this retail apocalypse.





The expensive boutique, which started as a humble pop-up store in Sydney's trendy Darlinghurst back in 2009, entered liquidation on September 4 after 15 years of bringing runway fashion to Australian wardrobes. For those who remember browsing their carefully curated collections, this news might sting a bit.




'Unfortunately, after 15 years of operations, this culminated in the appointment of liquidators'

Shannon Thomas, Desordre founder



Desordre wasn't just another fashion retailer—it had serious street cred. With stores in some of Australia's most fashionable postcodes (Darlinghurst, Bondi Beach, Melbourne's Armadale, and Brisbane's Fortitude Valley), plus an international online presence, it seemed like the kind of brand that would weather any storm.



Celebrities like Dina Broadhurst were regularly spotted in their pieces, and the brand had built a reputation for making high-end runway trends accessible to Australian fashion lovers.




Source: @desordreboutique / Instagram.



The devastating numbers behind the collapse



The financial reality tells a sobering story. The company owes 85 creditors—including Ralph Lauren and Alex Perry, which is owed $729,000, plus 13 influencers, models, and stylists. The creditor list reads like a who's who of the fashion world, including Byron Baes star Abbey Steanes and Perth model Holly Young.



But it's not just the glamorous names on the list—everyday businesses have been caught up in this mess too. From model management companies and landlords to TikTok, and even humble service providers like rubbish removal, pest control, and mowing businesses, the ripple effect of this collapse is widespread.




What happens to your money when a retailer goes bust?


If you've placed an order with a company that enters liquidation, unfortunately you become an unsecured creditor.


This means you'll likely join a queue behind secured creditors (like banks) to recover any money owed.


In most cases, customers receive only a fraction of what they're owed, if anything at all.




Shannon Thomas, the founder who launched Desordre with dreams of making runway fashion quickly accessible in Australia, told news.com.au she was 'deeply disappointed' to say goodbye to her business. She'd spent months working with advisers to consolidate operations and reduce overheads, but it wasn't enough to save the 15-year-old brand.









Australia's fashion retail apocalypse



Desordre's collapse isn't happening in isolation—it's part of what feels like a complete meltdown of Australian fashion retail. Ally Fashion, which operated for over two decades, shut down following a Federal Court order, affecting up to 185 stores across New South Wales, Victoria, Queensland, South Australia, and the Northern Territory, with more than 1,000 employees facing job losses.



The casualties keep mounting. Mosaic Brands, which owned well-known labels such as Autograph, Noni B, Katies, Millers, and Rivers, fell into administration and closed hundreds of stores after failing to find a buyer, owing $22 million to more than 2,800 staff with total debt exceeding $318 million.



Even Jeanswest, a brand many of us grew up with, had to call in administrators and announced the closure of all its physical stores in March this year. Australian luxury brand Harrolds went into liquidation after nearly 40 years, citing reduced luxury spending, decreased foot traffic, high office vacancies in city centres, and government policies as reasons for its downfall.









Why Australian fashion brands are struggling



The writing has been on the wall for some time. As retail expert Professor Gary Mortimer from Queensland University explains, Australian fashion retailers are struggling to compete with global giants like Zara that have perfected the fast fashion model. 'If you walk through a Zara store this season you will find similar trends, colours and cuts that you see off runways in Paris and Milan,' he noted.



McKinsey's State of Fashion 2025 report suggests that this year is likely to be a time of reckoning for many brands, with revenue growth expected to stabilise in the low single digits. Fashion leaders surveyed were pessimistic, with just 20 percent expecting improvements in consumer sentiment in 2025, while 39 percent see industry conditions worsening.



The challenges are multifaceted. Rising rents, increased competition from online retailers, changing consumer habits post-COVID, and the pressure from ultra-fast fashion brands have created a perfect storm. Many Australian brands that built their reputation on bringing international trends to local markets now find themselves squeezed out by retailers who can do the same thing faster and cheaper.










Signs your favourite retailer might be in trouble



  • Frequent sales and deep discounts becoming the norm rather than seasonal

  • Store closures in prime locations

  • Delayed responses to customer service inquiries

  • Long gaps between social media posts

  • Staff mentioning uncertainty about the company's future




What this means for customers and creditors



If you're someone who shopped regularly at Desordre or have outstanding orders, the situation is frustrating but unfortunately not uncommon in today's retail climate. Desordre's website currently states it's 'under maintenance' and is no longer taking orders, but it's unclear whether customers with pending orders will receive their items or refunds.



The liquidation is being handled by insolvency firm Mackay Goodwin, and if history is any guide, unsecured creditors (which includes customers who've paid for goods not yet received) typically recover very little of what they're owed. The secured creditors—usually banks and major suppliers—get paid first from any remaining assets.



The changing retail landscape



Interestingly, while many fashion brands struggle with younger consumers, McKinsey notes that the 'silver generation' of over-50 customers is growing as a proportion of overall population and fashion spending, suggesting brands could benefit from courting these often-overlooked customers in 2025.









This demographic shift might explain why some brands are struggling—many Australian fashion retailers built their business models around attracting younger shoppers, but perhaps didn't adapt quickly enough to serve the growing market of affluent, fashion-conscious older consumers.



The global trend is equally concerning. High-end fashion retailers worldwide faced a collapse in 2024-2025, with brands like The Body Shop, Ted Baker, Dancing Leopard, and others filing for insolvency or liquidation, signaling a reckoning for a sector long insulated from economic volatility.



What to watch for as a consumer



As more Australian fashion retailers face financial pressure, it pays to be a savvy shopper. If you notice your favourite brand having constant sales, closing stores, or taking longer to respond to customer inquiries, it might be worth being cautious about making large purchases or pre-orders.



The silver lining? The expansion of the resale and off-price segments means there are still ways to access quality fashion at reasonable prices, and many independent Australian designers are finding new ways to reach customers directly through online platforms and pop-up events.



Did you know?


Did you know?
Fashion retail liquidations typically see unsecured creditors (including customers) recover only 5-15 per cent of what they're owed, while secured creditors like banks often recover 70-90 per cent of their loans.



What This Means For You


The collapse of brands like Desordre represents more than just another business failure—it's a sign of fundamental changes in how we shop, what we value, and how the retail landscape is reshaping itself. For those of us who remember when shopping meant a trip to your local boutique where staff knew your name and preferences, these closures mark the end of an era.



What are your thoughts on the changing retail landscape? Have you been affected by any of these fashion retail closures, and how do you think Australian fashion brands can better compete in today's market? Share your experiences in the comments below.





  • Original Article


    https://www.dailymail.co.uk/news/ar...tml?ns_mchannel=rss&ns_campaign=1490&ito=1490





  • Desordre Fall: Australian Fashion Brand Break devido a US $ 2,4 milhões | DailyNerd

    Cited text: No entanto, o proprietário Shannon Thomas foi forçado a liquidar a empresa entre os projetos de lei.


    Excerpt: entered liquidation on September 4



    https://dailynerd.com.br/noticias/d...on-brand-break-devido-a-us-24-milhoes/214436/





  • Desordre Fall: Australian Fashion Brand Break devido a US $ 2,4 milhões | DailyNerd

    Cited text: A empresa possui 85 credores—que inclui Ralph Lauren e Alex Peri Que deve US $ 729.000.


    Excerpt: The company owes 85 creditors—including Ralph Lauren and Alex Perry, which is owed $729,000



    https://dailynerd.com.br/noticias/d...on-brand-break-devido-a-us-24-milhoes/214436/





  • Ally Fashion Closure Leaves 1,000+ Jobless Across Australia—Colitco

    Cited text: The popular women’s fashion brand, which operated for over two decades, has shut down following a Federal Court order. The closure affects up to 185 s...


    Excerpt: Ally Fashion, which operated for over two decades, shut down following a Federal Court order, affecting up to 185 stores across New South Wales, Victoria, Queensland, South Australia, and the Northern Territory, with more than 1,000…



    https://colitco.com/ally-fashion-collapse-australia-185-stores-1000-jobs/





  • Ally Fashion Closure Leaves 1,000+ Jobless Across Australia—Colitco

    Cited text: Mosaic Brands, which owned well-known labels such as Autograph, Noni B, Katies, Millers, and Rivers, fell into administration. The company closed hund...


    Excerpt: Mosaic Brands, which owned well-known labels such as Autograph, Noni B, Katies, Millers, and Rivers, fell into administration and closed hundreds of stores after failing to find a buyer, owing $22 million to more than 2,800 staff with…



    https://colitco.com/ally-fashion-collapse-australia-185-stores-1000-jobs/





  • Ally Fashion Closure Leaves 1,000+ Jobless Across Australia—Colitco

    Cited text: It owed $22 million to more than 2,800 staff. The company’s total debt exceeded $318 million.


    Excerpt: Mosaic Brands, which owned well-known labels such as Autograph, Noni B, Katies, Millers, and Rivers, fell into administration and closed hundreds of stores after failing to find a buyer, owing $22 million to more than 2,800 staff with…



    https://colitco.com/ally-fashion-collapse-australia-185-stores-1000-jobs/





  • Ally Fashion Closure Leaves 1,000+ Jobless Across Australia—Colitco

    Cited text: Last year, Australian luxury brand Harrolds went into liquidation after nearly 40 years of operation. The company cited reduced luxury spending, decre...


    Excerpt: Australian luxury brand Harrolds went into liquidation after nearly 40 years, citing reduced luxury spending, decreased foot traffic, high office vacancies in city centres, and government policies as reasons for its downfall



    https://colitco.com/ally-fashion-collapse-australia-185-stores-1000-jobs/





  • The State of Fashion 2025: Challenges at every turn | McKinsey

    Cited text: Consequently, 2025 is likely to be a time of reckoning for many brands. Judged purely by the top line, the fashion industry’s outlook for 2025 appears...


    Excerpt: McKinsey's State of Fashion 2025 report suggests that this year is likely to be a time of reckoning for many brands, with revenue growth expected to stabilise in the low single digits



    https://www.mckinsey.com/industries...p=&hdpid=2719aecf-df0f-4c00-a3f4-7da359feebb2





  • The State of Fashion 2025: Challenges at every turn | McKinsey

    Cited text: Fashion leaders polled in our annual BoF—McKinsey State of Fashion Executive Survey were just as pessimistic as last year. Just 20 percent expect impr...


    Excerpt: Fashion leaders surveyed were pessimistic, with just 20 percent expecting improvements in consumer sentiment in 2025, while 39 percent see industry conditions worsening



    https://www.mckinsey.com/industries...p=&hdpid=2719aecf-df0f-4c00-a3f4-7da359feebb2





  • The State of Fashion 2025: Challenges at every turn | McKinsey

    Cited text: While the fashion industry has historically prioritized younger shoppers, the “silver generation” of over-50 customers is growing as a proportion of t...


    Excerpt: Interestingly, while many fashion brands struggle with younger consumers, McKinsey notes that the 'silver generation' of over-50 customers is growing as a proportion of overall population and fashion spending, suggesting brands could…



    https://www.mckinsey.com/industries...p=&hdpid=2719aecf-df0f-4c00-a3f4-7da359feebb2





  • The Collapse of High-End Fashion Retailers: A Cautionary Tale for Luxury Investors

    Cited text: The collapse of once-dominant high-end fashion retailers in 2024—2025 has sent shockwaves through the luxury market, exposing vulnerabilities that inv...


    Excerpt: High-end fashion retailers worldwide faced a collapse in 2024-2025, with brands like The Body Shop, Ted Baker, Dancing Leopard, and others filing for insolvency or liquidation, signaling a reckoning for a sector long insulated from…



    https://www.ainvest.com/news/collapse-high-fashion-retailers-cautionary-tale-luxury-investors-2507/





  • The State of Fashion 2025: Challenges at every turn | McKinsey

    Cited text: This impulse is also driving expansion of the resale and off-price segments.


    Excerpt: The expansion of the resale and off-price segments means there are still ways to access quality fashion at reasonable prices



    https://www.mckinsey.com/industries...p=&hdpid=2719aecf-df0f-4c00-a3f4-7da359feebb2



Last edited:

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'Powerhouse' retailer? Never heard of them.
 
Never heard of Desordre. Must be because they were wanting a more up-market clientele, not the regular customers like myself.

“The expensive boutique…”
“With stores in some of Australia's most fashionable postcodes…”


It’s understandable they’d shut down. There are so many well established clothing stores that have been successful for decades that have gone or are going. ☹️
 
Another snobby "establishment" which caters for a niche market goes bye-bye.

Selling "fashion" that is mass produced in the sweatshops of Bangladesh, India, China and Vietnam that costs $5 to make, then sold off in Australia for $250, deserves to go broke.

For all we know, places like Desordre, probably relabel items as being "Made In Australia" when, in fact, they were manufactured in the ready-made garment (RMG) sector in Asia using slave labour who get paid a minimum wage of US$113 per month.
 
  • Like
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With Australias Per Capita Recession for over 9 quarters so it’s no wonder so many businesses are closing.

No one in the Government seems to be doing anything about it. No move to increase our productivity or increase manufacturing or get royalties from our natural resources we give away or even getting the cost of living down.

We are still heading straight down the toilet…….
 
  • Like
Reactions: Littleboy8
How strange, I live in Sydney and worked in the heart of Sydney CBD from 2008 to October 2021 and I worked in Fashion and have never heard of Desordre.
I asked my 8 daughters ranging in age from 20 to 46 and none of them have heard of Desordre either.

I asked my sister inlaw plus my 24 year old niece and surprise surprise 😮 they have never heard of them either.

So how popular are they ?
 

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