More Info About Coogi Fashion designer

Coogi's bright knitwear features prominently in Australian souvenir shops, but it may soon be removed from retail shelves, after the company was placed into voluntary administration.  

The business has struggled to come to terms with the fact that it's likely to be the latest victim of a struggling textiles industry.

Despite debts of more than $25 million, Coogi executives have been denying for months that the company was in financial strife.

In Melbourne, Kate Tozer with this report.

KATE TOZER: The designs may not be what one might expect to see on the catwalks of London or Paris, but Coogi knitwear is instantly identifiable.

The multicoloured knits, made with different wools, that overseas visitors find especially appealing, may soon be collectors items.

The Coogi Group has run up debts of $25 million, and Ferrier Hodgson Partner, George Georges, has been appointed the administrator.

GEORGE GEORGES: Oh, it tragedy if it goes under, the company has been around since 1969, so it 33-years-old and there was always an option for the director of the company to take the operations overseas, but he chose to remain in Australia and manufacture quality garments in Australia.

KATE TOZER: Coogi faces certain ruin without a buyer, and Mr Georges admits selling the business will be difficult. While the other administrators delve into the company financial affairs, the jobs of 300 people at Coogi Melbourne factory are under immediate threat. The appointment of administrators comes as no surprise to the Textile Clothing and Footwear Union, which represents the workers.

Michelle Oeil, the Union State Secretary, suspected all was not well earlier in the year, when employees?hours were reduced by 20 and 40 per cent.

MICHELLE OEIL: What we were shocked to find was that the company was in fact over $500,000 in arrears, in the payment to the worker supperannuation funds. Um, we then looked further at what was happening with the company and discovered that there actually seven companies that were part of the Coogi Group, and the company that employed the production workers, or the manufacturing workers, were all part of a company that had absolutely no assets. So, our alarm bells were ringi.