Top Aussie designer Alice McCall has confirmed her eponymous label is entering voluntary administration.

The designer – whose collaboration with retailer Cotton On is due out later this week and who first made her name as a stylist working with the likes of Natalie Imbruglia, Kelis, Destiny’s Child and Marianne Faithfull – blames the decision on the pandemic.

“I started my business, Alice McCall, 17 years ago. It holds great sentiment for me, and also, I hope, for our loyal customers. So it is with a heavy heart that due to the unprecedented effects that Covid-19 has had on our economy, as well as some unsustainable bricks-and-mortar rental obligations, I have had to make a necessary decision to edit down my business, with the objective of building a more sustainable business model for the future,” she said in a statement.

Alice McCall Pty Ltd appointed Ian Purchas and Jason Porter of SV Partners as voluntary administrators. In a statement Purchas said the business will continue to operate, but unfortunately a number of stores will close and some staff will be made redundant. It’s understood eight of its 12 physical stores will be shut.

“These steps have not been taken lightly, but have been necessary to give the company the best chance of survival whilst retaining a large number of its team and providing a return to its creditors,” he said.

This isn’t the only local label and retailer affected by Covid. This year we’ve seen Seafolly, Tigerlily and stationery chain Kikki K placed in voluntary administration, as well as Sydney retailer Tuchuzy.

McCall said she prides herself on being ethical, honest and transparent in her business, and thinks this process, while very hard, will help her business get stronger.

“I have still got plenty of drive in me to continue to create, and continue to connect with the Alice McCall customer. I intend to only get better.”