Australian fashion retailer Ally Fashion has shut 51 stores and laid off 250 employees after being forced into liquidation by the Federal Court.

The brand, founded in 2001, operated 160 stores and an online shop before its financial troubles. Liquidators Jeff Marsden and Duncan Clubb of BDO Australia were appointed on February 28, citing outstanding rent as a key issue.

To improve viability, they closed underperforming stores, with Queensland losing 19 locations, followed by New South Wales (11), Victoria (8), South Australia (7), and Western Australia (6).

The remaining 109 stores continue under a licence agreement with a related entity of director David Dai. Marsden stated that the closure and restructuring efforts aim to secure the brand’s future.

Ally Fashion, known for its fast-fashion offerings, had previously thrived but struggled amid rising costs. The retailer joins others, including luxury brand Harrolds and designer Dion Lee, in succumbing to economic pressures. The cost of living crisis has significantly impacted consumer spending and retail jobs across Australia.