kikki.K enters voluntary administration: What happens now?
The popular stationery store has been placed into receivership after citing "softening consumer spending and high leasing costs".
After a grim year for retailers, luxury stationery giant kikki.K has joined the ever-growing list of stores placed into receivership. Directors have today announced that the chain is in voluntary administration after they failed to find a global buyer for the business in time.
kikki.K currently operates more than 60 storefronts across Australia, the United Kingdom, New Zealand, Singapore and Hong Kong, with the majority based here in Australia. It also employs around 450 full-time staff, making the news a shock for many employees.
However, Barry Wright of Cor Cordis, who kikki.K has been placed into receivership under, has promised that business will continue as usual for stores while they seek to sell or restructure the business.
In a statement, Mr Wright said, "kikki.K has unfortunately joined what has become a long list of financially distressed retailers, given softening consumer spending, high leasing costs, compounded by a disappointing December and January trading period."
The financially distressed retailers that Wright speaks of includes major names such as Harris Scarfe, Bardot, Colette by Colette Hayman, Jeanswest, Debenhams, Stylerunner and Karen Millen. Each of the stores has been placed into voluntary receivership in the past year, citing low sales, high rent and a struggle to compete with the booming online market as the reasons behind their individual collapses.
Founder of kikki.K, Kristina Karlsson, has spoken out over her "profound" sadness of the situation and the closure of the kikki.K chain. "This business began with a young girl's dream 20 years ago and became an international success story with customers in over 150 countries," said Karlsson in a statement.
"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."
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