Myer has jumped in at the eleventh hour to save beleaguered luxury clothing labels Marcs and David Lawrence, but more than 100 jobs will still be lost.
The department store chain has acquired the brands, their intellectual rights and existing inventory for an undisclosed sum, two months after their parent company M Webster Holdings went into voluntary administration.
Administrators from Rodgers Reidy said 36 standalone stores will close in the coming week, and 130 casual staff will lose their jobs.
This will leave 12 standalone stores and 115 concession stores in Myer and David Jones continuing to trade.
Myer deputy chief executive Daniel Bracken said Marcs and David Lawrence were two of Myer's most sought after brands and the company did not want to see them go.
"We were a little surprised when they went into administration because both brands perform pretty well at Myer," Mr Bracken told AAP.
"They ticked the box of being desired brands and they ticked the box that they were highly productive brands (strong sales), hence why we didn't want to see them leave the business."
He said Myer had hoped a speciality retailer would buy the labels but when it learnt about a week ago that the business would be wound up after failing to sell, the company worked frantically to strike a deal with the administrator.
Under the deal, concession stores at Myer will continue to operate, however the future of the brands' stores at David Jones and its standalone outlets remain under a cloud.
While they continue to operate, Myer will review the wider store network and work with the administrator before deciding on the final operating model.
Mr Bracken said Myer's talks with David Jones have been positive and it will continue to work with its rival on "the right model."
"We are also pleased that through this acquisition we hope to be able to secure the future employment of a number of the Marcs and David Lawrence people," he said.
Administrator Geoff Reidy from Rodgers Reidy said the deal not only secured the future of two iconic Australian brands but was also in the interest of creditors.
