Lenders to Australian private equity-owned clothing and footwear retailer Colorado have rejected the indebted group's recovery plan, leaving the company with "no alternative" other than to appoint administrators.

Colorado, bought by Affinity Equity Partners in 2006 for $430 million at the height of the buyout boom, has about 430 stores in Australia and New Zealand with brands including Colorado, Williams and JAG. The stores employ thousands of people.

In addition to the ailing chain of Colorado Adventurewear stores, Colorado owns Williams The Shoemen, JAG, Diana Ferrari and Mathers Shoes.

In a statement released through PR company FD this morning, the Colorado board said it was ‘‘disappointed’’ bankers had rejected their restructuring proposal.

The board said it had put two proposals to its syndicate of banks.