demise of Koala Blue
Why did Newton-John’s clothes stores go broke?
Chris Mills, Kirlewood, NJ
She blames the recession. But some owners of the Koala Blue shops cite late deliveries, shoddy merchandise and poor management. They’re honestly upset with the I Honestly Love You singer, who created Koala Blue in ‘82 to sell Australian-style sportswear. Having filed for bankruptcy protection, she is trying to buy the trademark rights. If she succeeds, the furious franchisees say, she’s free to ignore deals with them and hook up with department stores. Two owners have sued Newton-John, 43, for millions in darnages. Of 1989’s 62 Koala Blue outlets in five countries, 33 remain.