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The Australian fashion chains Rhodes & Beckett and Herringbone have been sold as part of a management buyout backed by Hong Kong-based private equity firm AO Capital, taking the struggling fashion businesses out of bankruptcy.

Cor Cordis, the administrators of Rhodes & Beckett, announced Tuesday that the ailing retailer has been sold by means of a management buyout. The purchaser, Black Bear Holdings, is led by current brand director Michel Boutin and supported by Hong Kong-based private equity firm AO Capital.

It’s worth remembering that negotiations are still underway between the landlords of the 15 remaining Rhodes & Beckett and Herringbone stores, which will ultimately determine the new business’ store footprint, reported local media.

The new owners of Rhodes & Beckett advanced that the chain will undergo a relaunch later this year, with the brand set to redevelop its premium brand both in Australia and internationally.

Since the appointment of Cor Cordis as Administrators in February 2017, Herringbone and Rhodes & Beckett stores have continued to trade while discussions progressed.

Cor Cordis partner Luke Targett said in a statement that “The Rhodes & Beckett and Herringbone brands will survive and jobs have been saved. We feel that our previously announced two stage strategy has paid off.

"We appointed Gordon Brothers to complete an inventory clearance program, which then enabled us to successfully negotiate with interested parties to purchase the business with a fresh start and a new product range and offering,” added Targett.