Ally Fashion has collapsed impacting up to 185 stores across Australia and more than 1,000 staff.

The popular clothing retailer launched in 2001, with more than 150 stores in New South Wales, Victoria, Queensland, South Australia and the Northern Territory.

‘With over 50 new styles arriving per week, Ally Fashion is well in demand and the destination for women who can transcend fashion’s boundaries – defying the trends and creating their own,’ it previously said.

On Friday, the company was ordered by the Federal Court of Australia to be wound up due to insolvency.

The process was instigated by Ginninderra Properties, a commercial property group, which applied for the action in November 2024, according to a public notice from the Australian Securities and Investments Commission (ASIC).

Jeff Marsden and Duncan Clubb from BDO Sydney have been appointed as the liquidators.

It is the latest in a string of clothing retailers to go under as rising inflation combines with the availability of cheaper alternatives from international giants like Temu and Amazon. 

Queensland University of Technology Business School retail expert Professor Gary Mortimer said it was clear discretionary spending by Aussies has been reduced as a result of the cost of living crisis.

‘Those categories of fashion, footwear and accessories are highly exposed to discretionary spending and it’s challenging,’ Mr Mortimer told news.com.au.

‘I think that the concerning part of all this is the job losses and if we went and totalled it up … it’s thousands of jobs … and families out there with no jobs are also still facing the cost of living crisis.’ 

This was echoed by one Australian who said their female friends didn’t have the disposable income for fashion.

‘Every woman I know already has plenty of clothes and every one of them who is paying mortgage or renting is struggling. 

‘They have no disposable income for fashion left.’

One shopper took to social media to highlight the wider issues in the retail market: ‘Another week, another high profile collapse!’ 

Mosaic Brands entered voluntary administration late last year.

The company was behind well-known brands such as Katies, Millers, Noni B, Rivers and Autograph.

It broke the news to the Australian Securities Exchange in October after attempts by the company to informally restructure its operations failed.

Other brands that collapsed in the last year have included luxury Australian fashion retailer Harrolds, renowned label Dion Lee and popular clothing chain Katies.