Coronavirus Australia Popular stationary store kikkiK collapses during strict Australian lockdowns

One of the most popular stationary companies in the world has collapsed amid Australia’s tough lockdowns, only a year after it first went into administration.

Kristina Karlsson and Paul Lacy, the founders of cult stationary brand kikki.K, were forced to break the news of the collapse to staff this week. 

The much-loved brand that sells Swedish-style calendars, pens, diaries, notebooks and cards previously went into voluntary administration last March. 

The founders have blamed the most recent collapse on tough lockdown restrictions that forced the closure of at least 18 stores, the AFR reported.

Kristina Karlsson (pictured) and Paul Lacy, the founders of cult stationary brand kikki.K were forced to break the news of the brands collapse to staff this week

The much-loved brand that sells Swedish-style calendars, pens, diaries, notebooks and cards previously went into voluntary administration in March of 2020

‘Today is a sad day. Writing this note together is a sad task, and we still can’t quite believe it’s happening â€" again,’ a joint statement from the founders read. 

Kikki.K have also been forced to sack a large portion of its 300 employees who work in Victoria, New South Wales and the ACT. 

The brand relies heavily on in-store sales in franchises in Australia and New Zealand, with online purchases proving not enough to keep the company afloat.  

After collapsing for the first time 17 months ago, the business was sold to lifestyle brand Erin Condren Designs in June, who took over the reins in August. 

The company â€" which was founded in 2001 â€" owed $20million to creditors and was subsequently placed into administration under Cor Cordis, following a ‘perfect storm’ of conditions that led to the shutdown.  

As the never-ending cycle of lockdowns continues to cripple Australian businesses, Erin Condren decided it was too risky to continue funding the brand. 

The founders have blamed the most recent collapse on tough lockdown restrictions that forced the closure of at least 18 stores and a large majority of 300 employees stood down

‘Due to the prolonged challenges from the pandemic, kikki.K will proceed into voluntary administration in order to determine the best path forward for the brand,’ EC Designs spokeswoman Tonia Misvaer said. 

Citing the ‘unprecedented and extraordinary circumstances’ presented by the Covid-19 pandemic, kikki.K founders admitted the decision to close up shop would ‘profoundly’ impact on their partners, suppliers and stakeholders. 

‘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,’ the founders wrote to staff.  

The administrators, Liam Healey and Quentin Olde of global restructuring firm Ankura, will now be tasked with the tough gig of finding a buyer for the brand. 

Mr Lacy and Ms Karlsson have vowed to work closely with the administrators to explore all possible options for their ‘beloved’ brand and to support employees. 

The brand relies heavily on in-store sales in franchises in Australia and New Zealand, with online purchases proving not enough to keep the company afloat

They remain optimistic the business will find its feet with a willing buyer but say the collapse was a ‘tough moment’ in their 20-year journey. 

The company, which boasts 359,000 followers on Instagram, is believed to have sparked the interest of a Chinese company before the deal with EC Designs. 

Mr Lacy has assured customers the business would continue to operate while Ankura decided on the best way forward and corresponded with key players. 

Ms Karlsson previously revealed to MamaMia that 20 years ago she had woken her husband Paul up in the middle of the night to ask what she should do career-wise. 

Before the recent collapse the company had 102 global stores with its stationary stocked in an additional 250 and sold online to 147 countries (pictured, co-founder Kristina Karlsson)

The Melbourne-based mother-of-two had been living pay cheque to pay cheque at the time and lacked experience as well as a university education. 

The woman behind kikki.K said that she felt stuck, and so her husband told her to grab a pen and notepad. 

He said: ‘Let’s write down on paper what’s important to you. Let’s see if we can help you get some direction.’ 

She said neither of them knew what that list would mean, but it was the catalyst that would eventually help her begin kikki.K.

Before the recent collapse, Ms Karlsson’s company had 102 global stores with its stationary stocked in an additional 250 and sold online to 147 countries. 

Source: Daily Mail

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