One of our favourite stationery stores, Kikki.K has just announced that they have gone into voluntary administration, becoming the latest victim of brutal retail market conditions.
The founders of the company have shared their “profound regret and sadness” following their announcement earlier this week. They said there were a number of factors that lead to their closure – including shoppers opting to buy online, Coronavirus fears as well as political conditions including Brexit and unrest in Hong Kong.
“We’ve had the triple-whammy of soft consumer demand, the business impact of bushfires and more recently the unprecedented and profound impact of coronavirus which is hitting so many businesses and countries so hard,” Chief executive Paul Lacy said, in a Sydney Morning Herald report.
“This unprecedented line-up of external factors, particularly in recent weeks, has really taken its toll. As we looked ahead we just didn’t have the certainty we could keep going so have had to take this decision.”
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Ran Out Of Time
Kikki.K was said to be tying up final details of a capital deal with a large overseas partner, but “ran out of time”, forcing the company into administration.
Jobs In Jeopardy
The national retailer currently has around 65 outlets across the country, as well in a number of international locations including New Zealand, Hong Kong, and the UK.
The company was founded in 2001 by Swedish-born entrepreneur Kristina Karlsson and posted revenues of around $80 million and had 450 employees. The decision was made in 2016 to expand the business globally.
Ms Karlsson believes Kikki.K is an “amazing business opportunity” but needed a “big re-set and a buyer who understands the opportunity”.
“The last few weeks have been some of the most challenging of our lives but we remain determined to find the right new partner to continue chasing our dream, so we can get back on track for all of the people including our wonderful team who rely in some way on this beautiful brand,” she said.
Cor Cordis has been appointed to manage the receivership for Kikki. Barry Wight from Cor Cordis said he hoped to either restructure or sell the company.
Another One Bites The Dust
There have been a number of retail stores who have fallen on tough times in the last few months. Jeanswest and Colette by Colette Hayman all went into voluntary administration this year, along with department store Harris Scarfe.
How do you feel about the collapse of Kikki.K? Tell us in the comments below.