THE sale of iconic retailer Jeanswest 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, 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.
This is a great result for all parties.KPMG restructuring partner James Stewart
KPMG restructuring partner James Stewart said he was delighted with the outcome for Jeanswest and the opportunity for staff to secure ongoing employment.
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".
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.