THE brutal retailing environment has claimed another scalp, with clothing and footwear group Colorado entering receivership yesterday after a second restructuring bid failed.

The collapse of the private equity-owned company threatens the jobs of about 3800 employees who work in 434 shops across Australia and New Zealand.

But the group's well-known brands, including Mathers, Williams, Pairs, JAG and Diana Ferrari, are not likely to disappear.

Receivers and managers, appointed by lenders owed about $400 million, are expected to restructure or sell off the businesses as going concerns.

Solomon Lew's Premier Investments, which owns Just Jeans, Jay Jays and Portmans, is among those touted as potential buyers.

Hong Kong-based Affinity Equity Partners, which paid $430 million for Colorado in 2006, had sought to work out a deal with the group's 18 secured financiers in recent weeks.

But the lenders, including NAB, ANZ and Credit Suisse, pulled the plug following a board meeting on Monday and brought in Ferrier Hodgson as receivers and managers.

Colorado announced yesterday that it had no alternative but to bring in Deloitte as administrators.

"Despite extensive efforts by the board and management to facilitate an orderly restructure of the business, the position of the lenders now leaves the board with no alternative other than to appoint voluntary administrators," the company said.

The company suffered a $62.7 million loss last financial year. Expected pre-tax earnings this year plummeted from $53.7 million to $18.6 million.