Lockdowns force kikki.K back into voluntary administration

Luxury stationery brand kikki.K has once again entered voluntary administration, buckling under pressure from lockdowns to stem the spread of Covid-19.

Swedish design and stationery business kikki.K is understood to have entered voluntary administration on August 26.

Luxury stationery brand kikki.K has once again entered voluntary administration, buckling under pressure from lockdowns to stem the spread of the Covid-19 Delta strain.

The Swedish design and stationery business is understood to have entered voluntary administration on August 26, with Liam Healey and Quentin Olde of global restructuring specialists Ankura now working as voluntary administrators.

It comes after kikki.K was purchased out of voluntary administration in 2020 by US lifestyle products company EC Designs, which planned to restructure the unit. But the company said at this stage of its growth it was heavily dependent on sales at its 36 retail locations.

“As many of those locations have over recent months been forced to close, and many remain closed for an indefinite period of time as part of government ordered lockdowns in a number of geographies across Australia, New Zealand and Singapore, the business has not been able to withstand the massive impact,” it said in a statement.

kikki.K is co-founded and run by chief executive Paul Lacy.

“Sadly this was one series of lockdowns too many for the business to withstand,” he said.

“It’s been a massive battle for business survival in recent months. We’ve taken numerous urgent steps to find a way through but the sheer impact and magnitude of lost sales due to Covid lockdowns and the risks for Directors associated with continuing to trade with such significant uncertainty ahead gave no choice.”

He said the stores had been trading strongly when open and its website had continued to trade well.

Administrator and Ankura Managing Director Liam Healey said the administrators would undertake a review of the business and were working with the directors, owners and other stakeholders to assess the options available.

The business would continue to trade in the meantime.

The administrators will start an expressions of interest campaign for the sale or recapitalisation of the business shortly.

kikki.K continued to trade its online store and retail stores across Queensland, South Australia, Western Australia and Singapore, currently not affected by government-ordered lockdowns.

Originally published as Lockdowns force kikki.K back into voluntary administration