Job losses are imminent for Australian workers at fashion retailers Rhodes and Beckett and Herringbone.
The brands' German majority owner van Laack GmbH admits some of the stores have been "underperforming" and called in voluntary administrators on Monday to find a new buyer.
Cor Cordis administrator Bruno Secatore said unsustainably high overheads, unfavourable leases and the retail market climate contributed to the brands' financial difficulties.
Administrators have begun investigating which of the stores should be closed, while job losses are imminent for some of the 140 workers.
"Our main aim is obviously to determine what stores are burning cash," Mr Secatore said on Tuesday.
"We need to deal with those, and (work out) how we deal with that stock and the employees."
Administrators will look to move as many staff as they can to better performing stores or the brands' warehouse in Melbourne.
"Any store can only hold a certain number of employees, so unfortunately there probably will be staff that will be laid off, but we're trying to maximise the amount of staff that we retain," Mr Secatore said.
Employee entitlements will be covered, he says, while gift cards will be honoured until the business sale.
An ad campaign to find a new buyers for Herringbone Pty Ltd and Rhodes and Beckett Pty Ltd will also begin this week.
Administrators say while they are looking to sell the business as a whole, they are open to selling off parts of the business like its successful online platforms.
Rhodes and Beckett and Herringbone join a group of major retailers who cited financial difficulties in recent months.
Last week two of Australia's best known fashion brands, David Lawrence and Marcs were placed in voluntary administration.
Mr Secatore said the retail market is "very strange" at the moment, but admits a common theme has come out of those brands struggling to sustain profits.
"It just comes back to overheads, some unfavourable leases, changes in tastes, online - that just seems to be the common thread," he said.
There are 29 Rhodes and Beckett and Herringbone stores across Australia, mostly in NSW and Victoria.
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