Australian fashion label BlackMilk Clothing enters administration in grim week for retailers

An online clothing label that once led a viral fashion phenomenon has entered voluntary administration, capping off a tough week for retailers in Australia.

Online store BlackMilk Clothing, founded in Brisbane by Linda Lillis and her late husband James Lillis in 2009, has appointed administrators from Apex Advisory Australia after 17 years in business.

Lillis said it was “not an announcement I ever imagined having to make” in an emotional statement to customers on BlackMilk’s website.

“From the very beginning, this business became an enormous part of our lives and grew into something neither of us could ever have imagined,” Lillis said in a statement.

“Today, I have some very difficult news to share. 

“BlackMilk has entered voluntary administration and administrators have been appointed to take control of the business and assess the options for its future.”

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Lillis blamed difficult trading conditions, rising costs and a challenging consumer environment for the decision to bring in administrators.

She said BlackMilk will still trade as normal and orders will continue to be shipped to customers.

Staff members will also remain in the business as administrators investigate BlackMilk’s financial situation.

Lillis assured customers that while the future of the label remains uncertain, voluntary administration “does not mean the end of BlackMilk”.

“What started as a side hobby at our kitchen table became a global brand and a community that has meant so much to our family,” she continued.

“I’m incredibly proud of what BlackMilk has created over those 17 years. 

“There are people behind this business who have poured enormous amounts of themselves into it, including the team who are here today navigating what is an incredibly difficult and uncertain time.”

Administrators at Apex Advisory will now urgently seek a buyer to save the business from collapse.

“BlackMilk represents an opportunity to acquire an established Australian fashion brand with a distinctive market position and an existing direct-to-consumer presence,” an Apex Advisory spokesperson said.

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“The immediate priority is to engage with credible parties who have the capability and resources to progress a transaction quickly. We encourage interested parties to make contact as soon as possible.”

BlackMilk began in 2009 after late co-founder James Lillis bought a sewing machine and began making clothes at the couple’s kitchen table.

It quickly became known for its legging made from unusual fabric designs, including the viral galaxy leggings which were launched in 2011 and were emblazoned with real NASA imagery.

BlackMilk is the second Australian brand to appoint administrators in as many days.

Department store giant David Jones has also entered voluntary administration, with stores expected to be closed and thousands of jobs at risk.

The board handed control of the 188-year-old department store chain to voluntary administrators from McGrathNicol after meeting on Thursday morning.

Christopher Hill, David McGrath and Joanne Dunn, of FTI Consulting, have been appointed receivers and will run the business until it is restructured and put up for sale.