An iconic fashion retail giant has closed at least one of its flagship stores as the company prepares to fight a proposal to wind up operations over unpaid debts.
General Pants Co recently shut down its Sydney CBD outlet on George Street following a massive storewide sale, sparking disappointment among fans.
This latest blow to the fashion industry comes as the embattled youth retail chain faces legal action that could see it placed into liquidation unless its alleged debts are paid.
Earlier this month, General Pants Co was served with an insolvency claim by distributor UCC Australia, which alleges the company owes $69,835.92 for delivered stock.
The distributor claims the unpaid invoices were for the supply of cameras and film between October and December last year.
‘The goods were delivered and accepted by the debtor, and the invoiced amounts remain due and payable,’ court documents state.
UCC Australia filed a winding-up order against the retailer earlier this month, according to a notice from the Australian Securities and Investments Commission.
The order was lodged after General Pants Co failed to comply with a recent statutory demand to pay the alleged debt.
A General Pants flagship store closed down in Sydney as the embattled fashion retailer prepares to fight a wind-up order over alleged debts
General Pants Co has signaled its intention to oppose the winding-up application in a two-page response filed with the court last week.
The company maintains that it is solvent and claims the debt to UCC Australia ‘has now been fully resolved.’
The matter is scheduled to be heard in Victoria’s Supreme Court on August 20.
This marks the second winding-up order filed against General Pants Co, following a similar application by logistics company Mainfreight last year, which has since been resolved.
The closure of the retailer’s flagship Sydney store followed a viral social media post from a shopper promoting a 40 per cent storewide sale, fueling speculation about an impending shutdown.
Some items already discounted were further reduced to $20, including jeans.
‘This is literally one of the best sales I’ve ever seen,’ the woman said.
‘There is a ton of stuff.’
The George Street store has since closed and is now bordered up.
General Pants has been a fashion staple for Aussie youth since 1972
General Pants Sydney CBD store on George St recently had a massive storewide sale, sparking speculation. The store has since closed
The retailer is currently running major promotions on its website, offering up to 60 per cent off.
Founded by Tom and Bronwyn Tsipris in 1972, General Pants Co has been an Aussie fashion staple for more than half a century, specialising in denim, street, and surf wear.
There are more than 60 General Pants stores across Australia and New Zealand.
General Pants Co is now part of Alquemie Group, which previously operated SurfStitch, which was placed into administration in June, and Ginger & Smart.
Daily Mail Australia has contacted Alquemie Group for comment.
The General Pants store closure and legal action follow the collapse of dozens of other fashion retailers.
Hundreds of Rivers, Katies, Noni B and Millers stores have closed across Australia in recent months after parent company Mosaic Brands made major cuts to ‘consolidate’ its business.
General Pants Co was issued with an insolvency claim by distributor UCC Australia, which alleged that the company owes $69,835.92
Women’s retailers Ally Fashion and Collette, JeansWest, footwear giant Wittner activewear company Exoticathletica have also collapsed in recent months.
Country Road Group has also recently shut down a number of stores amid plummeting sales.
It comes as Roy Morgan data reveals that over a 12-month period, 3.8 million Australians shopped on Temu and around 2 million on Shein, generating more than AU$2 billion in sales within Australia, ditching traditional retailers.
‘Shein and Temu have taken the market by surprise,’ said Michele Levine, CEO of Roy Morgan. ‘Few anticipated such strong demand for ultra-cheap, disposable retail in Australia.’
Levine added that rising cost-of-living pressures have driven Australians to seek better value, fueling the rapid growth of both platforms.
‘It’s not just discount stores feeling the impact,’ she said. ‘Major department stores are also under threat, as consumers shift part of their spending to Temu and Shein in search of greater savings during tough economic times.’
QUT marketing expert Professor Gary Mortimer told News thousands of jobs had been axed as a result.
‘A senior executive, maybe a buyer may be lucky to get a job with the likes of Wesfarmers or Woolworths Group buying again, but a store manager of a small fashion chain I think they’ll struggle. Where do they go?’
