LEADING clothing retailer Jeanswest will remain in Tamworth despite dozens of stores closing across the country.
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The decision to spare the store comes weeks after Armidale's Jeanswest store was closed.
KPMG's James Stewart said the decision to restructure the business was difficult, but necessary to provide it with the best possible chance of attracting a new owner.
"The decision to proactively restructure the business early in the administration process has not been taken lightly," Mr Stewart said.
"We are very mindful of the serious impact store closures and staff redundancies have on people's lives.
"However, we must also work to maximize the opportunity for this business to be sold or restructured - to give it the best chance to continue."
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Last week the company moved into voluntary administration, forcing administrators from KPMG to conduct an analysis of the business.
In total, the company, which was founded in 1972, has opted to close the doors of 37 of its 240 stores nationwide, leaving 263 employees out of a job.
Mr Stewart said there was no time frame on the closures and administrators would look to redeploy staff members wherever possible.
Support will also be offered through the Jeanswest employee assistance program to employees affected by the store closures.
Mr Stewart said a number of factors had led to the company's decision to go into voluntary administration.
"Like many other retailers, the business has been challenged by current tough market conditions and pressure from online competition," Mr Stewart said.
"The administration provides an opportunity for Jeanswest to restructure, so as to better respond to the challenging Australian retail market."
Thursday's announcement comes after the recent struggles of several other major retailers, such as EB Games, Harris Scarfe, Target, Big W and The Reject Shop.