Luxury fashion brand and Gap clothing retailer Oroton Group Ltd (ASX: ORL) has called in the administrators today after being unable to reach a deal for more credit from some of its key backers.
The stock sold for as much as $2.35 a year ago and last closed for 43.5 cents with its remaining shareholders likely to be left high and dry as creditors at the back of the queue.
The company has been searching for new investors or a potential buyer, but appears to have thrown in the towel as same-store sales at its Oroton and Gap brands dropped heavily over the past year.
Consumer brand preferences across the luxury fashion market in particular can be fickle, with Oroton's handbag brand falling out of favour with cashed-up shoppers.
The GAP office wear and smart casual retail brand performed especially badly, with same-store sales down 11% in fiscal 2017, which suggests its failure was about more than the tough retail conditions of 2017.
The group had net debt of $5.7 million at the end of fiscal 2017 and joins a long list of whacked retailers including Marcs, David Lawrence, TopShop and Myer Holdings Ltd (ASX: MYR).
