Launceston's Jeanswest store will not be shut down after the retailer announced 37 stores would be closed permanently nationwide.
The jeans and maternity wear brand entered voluntary administration earlier in January, attributing their closure to the increasingly harsh retail market in Australia.
The business employs 988 people across 146 stores - of that, 246 staff will be made redundant.
Jeanswest has stores in Launceston, Devonport, Burnie and Hobart.
Hobart City's Jeanswest store was the only one in the Tasmania to be shut down as part of the restructure.
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Professional services firm KPMG is handling the administration process.
KPMG voluntary administrator James Stewart said the decision to shut down stores and dismiss staff was done in part to give the business the best chance to secure a new owner.
"The decision to proactively restructure the business early in the administration period process has not been taken lightly," he said.
"We are very mindful of the serious impact store closures and staff redundancies have on people's lives.
"However, we must also work to maximise the opportunity for this business to be sold or restructured - to give it the best chance to continue."
This announcement comes after both EB Games and Harris Scarfe revealed their Launceston stores would survive their mass closures.