About Coogi brand

                                                                                         Coogi story

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.  [url=http://www.worldtoptrade.com/category-6-b0-Coogi+jeans.html]

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抯 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抯 tragedy if it goes under, the company has been around since 1969, so it抯 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抯 financial affairs, the jobs of 300 people at Coogi抯 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 O扤eil, the Union抯 State Secretary, suspected all was not well earlier in the year, when employees?hours were reduced by 20 and 40 per cent.

MICHELLE O扤EIL: What we were shocked to find was that the company was in fact over $500,000 in arrears, in the payment to the worker抯 supperannuation funds. Um, we then looked further at what was happening with the company and discovered that there抯 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 ringing.

          

KATE TOZER: The Union also found the company had been deducting fees without passing them on. But until now, Coogi had failed to admit its financial crisis. Michelle O扤eil says workers are now left exposed, which highlights a loophole in the law.

MICHELLE O扤EIL: Fundamentally, Australia抯 corporation laws and industrial laws need to change. I mean, this is not the first instance of this. It was a bit like, from the Union抯 point of view, gazing into a crystal ball. It was very clear where this company was heading, yet they continued to deny they were in financial difficulty, they continued to vigorously oppose all attempts we made in the Industrial Relations Commission, to have the group of companies recognised as responsible for the workers and their entitlements, and then of course, ultimately, what we expected to happen, happened. Um, this is a crime, it抯 a crime that we don抰 have tough enough corportions laws, that actually protect workers in this situation.

KATE TOZER: It抯 clear that from a number of recent insolvency cases, businesses try to limit their liability by moving assets and restructuring companies within a group. Bernadette O扤eil, a lawyer with Morris Blackburn Cashman, says workers need more protection under the law.

BERNDADETTE O扤EIL: Under the industrial laws, employees are often employed by one company within a complex web of related companies within a group, and if they happen to be employed by a company that has no assets, but other companies that are related have assets, then it抯 very difficult to ensure that other companies are responsible or have some liability for the workers?entitlements, and this occurs even when in many cases employees aren抰 even made aware when their employment is transferred from on company to another.

KATE TOZER: The union want抯 Coogi抯 founder and owner, Jacky Taranto, to personally guarantee entitlements. As yet, there抯 no clear indication why the company fell so heavily into debt. Adminstrators will reveal more at a meeting next week.