Another major Australian retail chain has collapsed, with the receiver warning that more could follow, as consumer confidence remains shaky.
Key points:
- Administrator Cor Cordis plans to keep stores open and sell the whole group
- The chief executive said the company had been caught in a perfect storm of soft consumer demand, bushfires and coronavirus
- At least six other retailers, including Bardot, have also gone under or been forced to close stores this year
Almost 500 jobs are in limbo after Melbourne-based stationery chain kikki.K was placed into voluntary administration.
The chain has 65 stores across Australia, Singapore, Hong Kong, London and New Zealand, as well as an online store.
Barry Wight from the company’s receiver, Cor Cordis, told the ABC that the retail chain had been struggling for some time, but that poor summer trade had likely exacerbated its problems.
“There really just wasn’t enough spending money during the December and January period,” Mr Wight said.
“Certainly we’ve had an impact of bushfires in December and then most recently the impacts of the coronavirus.”
Mr Wight said the chain made almost $70 million in sales last year.
“It’s got a lot going for it but the recent events have made it too difficult to…