Popular clothing brand shuts down its last Australian factory and shifts production to China

The popular fashion label BlackMilk Clothing has closed its last Australian factory and moved production to China. 

‘Today we’re announcing that Black Milk has made the decision to wind down manufacturing at our Brisbane factory,’ CEO Jackie Kruger said on Friday.

‘As part of this transition, we are consulting with 15 members of our production team. This is one of the most difficult decisions we have made as a business.’

It is understood the manufacturing process will move to China.

‘I know not everyone will agree with this decision. I respect that. As CEO, this decision sits with me,’ Ms Kruger said.

‘I also know that trust is not built through announcements like this. It is built by what we do next.

‘We have previously said publicly that we intended to continue manufacturing in Brisbane. 

‘That was genuinely our intention, and we worked for years to make a model of local and offshore production work together.’

However, the CEO said a key reason for the move was that the production process was not profitable in Australia. 

‘The reality for us is that manufacturing in Brisbane is no longer commercially viable in a way that allows us to deliver a range of products into the future and continue investing in the business,’ Ms Kruger said.

‘The decision wasn’t based on manufacturing costs alone. 

‘It also reflects the types of products we want to create, the materials we’re introducing, specialist production capabilities and building a model that supports Black Milk’s long-term future.’

She also highlighted that the change to the company’s product strategy was partially due to the label’s increased use of cotton, other natural fibres and recycled polyester.

‘Many of these fabrics and the specialist production capabilities required to work with them are not available through our current Brisbane factory,’ she said.

‘As part of this transition, we are strengthening our quality processes by transitioning to 100 per cent inspection of offshore production. 

‘We will continue evaluating new fabrics, construction methods and product performance, and we will make changes where something does not meet the standard we expect.’

Customers are still expected to see Australian-made products for some time and Ms Kruger said there will be clear detail identifying each item’s country of manufacture. 

BlackMilk is currently consulting with the 15 staff whose jobs are at risk and said employees will be supported. 

The company’s creative team and warehouse will remain in the Brisbane office. 

BlackMilk Clothing was launched in 2009 by designer James Lillis, who died while on holiday in February 2024. 

The brand is known for designs that feature pop culture references, such as comic books, Pokémon and novels.