People power saves beloved family-owned retailer Ishka
In February one of Australia’s oldest family retailers was sent into administration, but in an “unbelievable” turn of events, customers came flooding back and helped have saved this beloved chain from a complete wipe-out.
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People power has saved one of Australia’s oldest family retailers.
Ishka, a 50-year-old handicraft and homeware chain, was hit by a catastrophic summer and went into administration in February, just before coronavirus then forced shut each of its 58 stores.
Owner Toby Darvall urged customers to support them by shopping at the stores and by telling their friends as well – and they did.
“It’s unbelievable, I almost have to pinch myself. We were all looking on Seek for jobs – we didn’t think there was any chance we were going to come out of this,” he told the Herald Sun.
Online Ishka sales surged by 60 per cent and there were four big weeks of trading as loyal customers shopped at the bricks and mortar stores before they closed in late March.
Mr Darvall said it was that response that has led to the reopening of 37 stores and saved almost 400 jobs.
“They were shopping and buying and that cash inflow made an enormous difference. It gave the National Australia Bank an enormous amount of confidence and on the back of that they supported us and wanted to see the jobs saved. So those sales and the backing of the bank got us over the line.”
Ishka sells hand made crafts, homewares, gifts, clothing, furniture and jewellery from around the world and was started almost 50 years ago in the Melbourne suburb of Glen Iris.
When the government offered Jobkeeper to ailing businesses, Mr Darvall realised he still had a viable business.
“Without Jobkeeper we may have just survived, but with less than 10 stores.”
Before coronavirus Australians were increasingly turning to overseas sites – but the pandemic had thrown up unexpected opportunities.
“With the shutdown of the airlines, that has removed around 95 per cent of the airfreight capacity of the market – and with all of that gone, overseas online retail has struggled to get their product into Australia which is giving Australian retailers a real leg up and chance to compete.”
There was still tough times ahead.
“It’s critical for retail that the government extends Jobkeeper through until December because retailers rely on Christmas.
“September is when retailers are buying stock for Christmas, so they are cash strapped. If they suddenly also turn off Jobkeeper at that stage you are going to see a lot of retailers fall over in that three month period … If it’s turned of, you will have retail armageddon. It will be an absolute disaster.”
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