Stationery giant kikki.K has collapsed into voluntary administration, with the future of the business' Australian stores in jeopardy.
Directors of kikki.K today placed the business into voluntary administration as falling sales weighed on the company's bottom line.
The company, which describes itself as a "global everyday luxury stationery business", currently boasts 65 stores mostly in Australia but also in the United Kingdom, New Zealand, Singapore and Hong Kong.
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The chain boasts 450 full-time employees and has $70 million in annual revenue.
Administrator Jim Downey of J.P. Downey & Co will now seek to sell or restructure the business.
Founder of kikki.K Kristina Karlsson said she felt "profound" sadness over the closure of the business.
"It is with profound regret and sadness that we take this action," said Ms Karlsson.
"This business began with a young girl's dream 20 years ago and became and international success story with customers in over 150 countries."
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Co-founder and CEO Paul Lacy said he had been working hard to find a global buyer for the business.
"But we ran out of time and had no choice but to place the company into external administration," said Mr Lacy.
The retail giant, which sells eclectic stationery items with Swedish design, boasts stores across Australia, New Zealand, Singapore, Hong Kong and the UK.
The business has also been placed into receivership under Barry Wright and Bruno Secatore of Cor Cordis.
Mr Wright stressed it would be business as usual for stores while receivers worked to save the retailer from going under.
"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," said Mr Wright.
"That said, we believe kikki.K has a strong brand with a large global following, producing sales of almost $70 million a year.
"We're now urgently working with management in respect of a plan to restructure the business and enhance value, whilst also investigating a sale of the kikki.K."
The stationery mainstay has been operating in Australia since 2001 and has made online sales in more than 150 countries to a customer database of 3.7 million people.
Source: 9News https://www.9news.com.au/national/kikkik-stationery-business-collapses-into-voluntary-administration-australia-news/36bbd958-de39-4918-94e4-7fd59e884761