Circonomy goes into liquidation blaming the retail slowdown

A circular economy pioneer that started out as the World’s Biggest Garage Sale charity and is part-owned by Officeworks has gone into liquidation.

Yasmin Grigaliunas, whose company went into voluntary liquidation.

Pioneering circular economy business Circonomy has been placed into creditors’ voluntary liquidation, with its founder saying it was a victim of the retail slowdown.

Yasmin Grigaliunas, who started the Brisbane-based social enterprise in 2013 as the charity fundraiser the World’s Biggest Garage Sale (WBGS), said that despite the best endeavours of the team to increase sales and reduce costs, the business was no longer financially viable.

She said the decision was not a reflection of the performance or dedication of workers but a slower retail environment.

“We express our deepest gratitude to all who have been part of this journey – our team, our partners, and our shareholders. Your belief in our mission has been the driving force behind every milestone we’ve achieved,” Ms Grigaliunas said in a statement.

The company went into liquidation on October 4 and liquidators James Taplin and Stefan Dopking of BRI Ferrier were reviewing its operations with the potential of selling the business.

WBGS started as an charity run by Ms Grigaliunas offering a wide range of products – usually furniture and office supplies – which were repaired, recycled or refurbished, in a bid to reduce waste and costs and increase sustainability.

In September 2017 WBGS became a company and in 2022 Circonomy was launched after Wesfarmers subsidiary Officeworks took a 21 per cent stake in the business.

The business, which had an outlet in Morningside in Brisbane’s south east, planned to expand into a national recovery and repair service under the Circonomy brand, expanding beyond furniture and office supplies, to retail products that would otherwise be sent to landfill.

Yasmin Grigaliunas at the business’ Morningside base.

At the time Officeworks managing director Sarah Hunter said the investment in WBGS demonstrated the environmental, social and financial opportunities associated with a more circular economy.

“Over the last three years, we have partnered with WBGS to help us achieve our vision of contributing to a more circular economy and becoming a zero-waste business,” she said.

“Together we have demonstrated a feasible model to collect, repair, repurpose and resell damaged or customer returned products. We’re excited to replicate and scale this model across Australia.”

Late last year, Circonomy opened a second store in the north Melbourne suburb of Reservoir.

Its expanded range spanned homewares, clothing and footwear, beauty and personal care products, toys, sports equipment, watches and technology.

Ms Grigaliunas said her focus was to supporting employees through this process.

“We understand the impact this decision will have on them and we do not take it lightly,” she said.

“While this is not the outcome we had hoped for, we are proud of the positive impact Circonomy has made. The lessons learned and the connections forged will continue to influence the circular economy landscape.”

An Officeworks spokesman said the business was proud to become an investor in Circonomy in 2022, as part of its ongoing commitment to sustainability.

“Officeworks is committed to continuing to play an important role in the circular economy, finding opportunities to transform what may be seen as waste, into valuable resources,” they said.

“Officeworks acknowledges all Circonomy employees for their hard work and contribution.”

On social media local member Di Farmer said many people have come to know “this wonderful social enterprise”.

She said Ms Grigaliunas first founded it as the World’s Biggest Garage Sale but took it further to “show us all how to be part of a circular economy where nothing is wasted and where we can all lead more environmentally sustainable lives”.

“The impact she has made could not be measured,” Ms Farmer said.

Originally published as Circonomy goes into liquidation blaming the retail slowdown