Australia Post freezes Ishka online account, owner says
When Aussie retailer Ishka went bust customers rallied to try to save the business with a huge spike in online sales. But Ishka’s owner says Australia Post has frozen its account and is refusing to deliver the orders.
Business
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The postal account of Aussie retailer Ishka has been frozen leaving thousands of parcels in limbo and threatening dozens of jobs.
Toby Darvall, the owner of family retailer Ishka, confirmed on Thursday Australia Post had refused to pick up 2000 orders.
Ishka was placed into voluntary administration last week after a disastrous summer, but Mr Darvall said customers had rallied to try and save the 50-year-old business with a huge spike in online sales.
“It’s terrible, now all of those orders are just sitting there because Australia Post won’t pick them up. It means thousands of customers won’t get their parcels and we will probably have to immediately lay-off 60 staff,” he said.
“Australia Post really has a monopoly in the home delivery of online parcels and we have no other option but to send through Australia Post.”
Mr Darvall said the future of the business was uncertain and the main focus was trying to save jobs.
“Our loyal customers have really tried to help us, even bringing flowers and chocolates in to many of our stores to staff as they were concerned about their welfare. At this stage the future is very uncertain and we are just trying to save 500 jobs,” he said.
Ishka is offering to refund their customers the Australia Post fee and give them an extra $10 voucher if they come and pick up their parcels in store.
“All we want to do is to continue to trade with Australia Post in exactly the same way we have for years. We even offered to pay for future services upfront but they won’t accept it. We don’t want any extra favours. We’re just fighting to stay alive and preserve 500 jobs.”
Mr Darvall said retailers depended on a “reliable and trustworthy delivery service”.
“Without it we’re stuffed.”
An Australia Post spokesman said they had been working closely with administrator Cor Cordis and hoped to return to a “normal credit relationship as soon as possible”.
“In the meantime, Ishka can continue to use Australia Post services on a pay as you go arrangement.”
When businesses go into administration they cannot incur credit but Ishka could continue to distribute their parcels on a pay as you go system at Australia Post stores, or provide payment upfront.
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