Melbourne CBD
The central business district (CBD) of Melbourne can be seen from the area located along the Yarra River called Southbank located in Melbourne, Australia, July 27, 2016. Reuters/David Gray

Australian fashion brand Zachary the Label has reportedly gone into voluntary administration due to funding issues and increased competition both internationally and online. The Melbourne-based brand joined the list of retailers that have gone into administration on Monday.

The news was reportedly confirmed by insolvency firm Jirsch Sutherland, which has been appointed as administrators. Its managing partner Glenn Crisp said that the move was a result of restricted funds needed to continue the business’ operation, promote the label and produce stock. He also cited market expansion.

Zachary the Label is the latest among known Australian fashion brands to go into administration over the past year due to a range of pressures, which included increased international competition. Online competition is growing, too.

“As the online retail marketplace expands and traditional geographical barriers to entry are removed, Australian retailers are dealing with more competition than ever before,” Power Retail quotes Crisp as saying.

The administrators are now assessing the business. They are also currently meeting with creditors and dealing with the closures of unprofitable stores. Crisp said that the administration presents a chance to buy a popular fashion brand in addition to an established online store and social media presence.

The local fashion multichannel retailer has five retail outlets with an online shop. It also has a “Shop Insta” link on its Instagram account, allowing customers not only in Australia but also in the United States, UK and New Zealand to place orders.

Instagram was a significant sales channel for the business with its 208,000 followers. Its feed and website feature the brand sported by some international celebrities like “Keeping up with the Kardiashians” stars Kendall and Kylie Jenner.

There are also photos of designer Effie Kats, who founded the business when she could not find a dress to wear to a wedding. She brought on manufacturer Theo Hamalis in 2016. Kats' personal Instagram account appeared to hint what the fashion brand may have been going through. "Sometimes you're flush and sometimes you're bust, and when you're up, it's never as good as it seems, and when you're down, you never think you'll be up again, but life goes on," a January post reads.

Zachary turned over more than $1 million last financial year. It was on track for turnover of more than $2 million this year, The Sydney Morning Herald reports. The first creditors’ meeting is scheduled on March 7.