Australian luxury handbag retailer Oroton Group has entered voluntary administration after attempts to find a buyer had failed.

The development comes after Oroton was unable to find a workable solution for recapitalising or offloading the business after a seven-month strategic review.

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Deloitte Restructuring Services administrators Vaughan Strawbridge and Glen Kanevsky have been appointed to oversee the sale or recapitalisation.

“It is apparent that voluntary administration is necessary to protect the Oroton business and the future of this iconic Australian brand.”

Oroton Group interim chief executive Ross Lane was quoted by media sources as saying: “There was no other solution that could achieve a better outcome than voluntary administration.

“The board is disappointed that it has had to take this step after running such a comprehensive process.

“However, having carefully considered the options available to the company at the conclusion of its strategic review, it is apparent that voluntary administration is necessary to protect the Oroton business and the future of this iconic Australian brand.”

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The company will continue to operate the business through the administration process.

In August, the retailer terminated its agreement with US-based fashion company Gap following which it closed six franchise stores to focus on its handbag business.

Oroton’s net debt increased from A$2.8m ($2.12m) in FY16 to A$5.4m ($4.09m) in FY17, while its net profit after tax (NPAT) stood at a loss of A$14.3m ($10.83m) from a profit of A$3.4m ($2.57m) in FY16.

Its revenues declined from A$136.4m ($103.38m) to A$123.2m ($93.38m).

The wind-down of the Gap stores is expected to be completed by 31 January next year.

The company operates more than 70 stores across Australia, New Zealand and Malaysia.