The women’s fashion company that owns bag brands Colette by Colette Hayman and The Daily Edited has entered voluntary administration as it explores a potential sale of the business.

Marquee Retail Group’s board of directors said on Wednesday it had been hit with an unplanned downturn in sales since October, the result of inflation and rising interest rates.

This was compounded by its ongoing debt arrangements with the Australian Taxation Office, which dates from a drop in sales induced by the Covid-19 pandemic.

The board said it aims to keep all stores open and had no plans to reduce staff at this stage.

“Our decision today is about securing the future of the Marquee Retail Group and its employees, while emerging on the other side of voluntary administration,” chairman Bernie Brookes said.

“We hope to work with all parties to ensure an outcome, either with a sale or a deed of company arrangement recommended in time by the administrator.”

Domenic Calabretta, Mitchell Ball and Richard Lawrence of Mackay Goodwin have been appointed as voluntary administrators.

Colette has about 45 stores mostly in shopping centres around Australia, devoted to affordable handbags, jewellery and fashion accessories.

The Daily Edited has a flagship store in Sydney’s Queen Victoria Building and an international following online, selling women and men’s leather goods, stationery, bags, phone cases and wallets.

-AAP