Kikki.K, a popular stationery chain in Australia, has gone into voluntary administration for the second time in 17 months.
This is mostly due to the lockdowns in NSW, Victoria, and ACT and now puts over 300 Aussies’ jobs at risk.
Kikki.K’s co-founders Kristina Karlsson and Paul Lacy released to their staff that the company is going into voluntary administration again.
“The loss of revenue from the forced and extended closure of so many of our stores due to the Covid pandemic, as part of the government, ordered lockdowns, has taken a direct massive and insurmountable toll,” they said.
Lacy added that the series of lockdowns was too much for the business to handle.
“We’ve taken numerous urgent steps to find a way through but the sheer impact and magnitude of lost sales due to Covid lockdowns and the risks for directors associated with continuing to trade with such significant uncertainty ahead gave no choice,” he said
What’s next for Kikki.K?
Now, administrators from the global restructuring firm, Ankura, will handle the voluntary administration.
Led by its senior managing director, Quentin Olde, the firm is currently reviewing the business. Olde said that they are currently working with the directors and the owners of Kikki.K to assess the options and will make decisions regarding the operations of the business.
“The business currently operates 36 stores of which 30 are closed due to Covid-related issues in Victoria and NSW and that is the main impact on the business – its inability to withstand another retail shutdown in the Covid environment.”
Olde said that the sale process would start later this week for interested parties to either buy or recapitalize the business and expects that there would be strong interest due to the brand’s strong following.
“It really is in this situation because of the lockdowns and the retail environment in Australia and the decision by the owners to not continue to fund the retail structure with the uncertainty of lockdowns and how long they are going to go for,” he said
In March of 2020, the company collapsed; owing $20 million to creditors. However, US-based lifestyle products company, Erin Condren Designs (EC Designs), rescued the company and took control in August last year.
EC Designs director, Tonia Misva, said they would work closely with the administrators to help the brand.
Due to retail store closures, some staff has already been stood down and with more being expected to be stood down as well. However, the brand would continue to trade online and on its sites across Queensland, South Australia, Western Australia, and Singapore.
