The administrator of travel goods brand Crumpler is seeking an ‘urgent’ sale of the business

The administrator of Melbourne-based bag brand Crumpler is seeking urgent expressions of interest for the business.

Crumpler co-founder and director Dave Roper.

Administrator PKF is seeking urgent expressions of interest to buy bag brand Crumpler after lockdowns and travel restrictions pushed the company into voluntary administration.

PKF said in a statement that it was hopeful that a sale would occur on a “going concern” basis.

“Once a contract of sale is executed and price determined, the administrators will determine the likely return to the unsecured creditors,’’ a PKF spokesperson said.

The administrator is yet to release a debt figure for the company, which records show struggled financially in the 2018 and 2019 financial years - the latest for which full-year reports are available.

PKF, which was appointed on August 31, said the Crumpler board determined that it had insufficient cash flow to meet its ongoing obligations and handed it over the administrators.

“The main contributors towards the cash flow situation are Covid-19 related closures of

Melbourne and Sydney stores as well as a general downturn in the travel industry resulting in

reduced demand for travel and business accessories,’’ PKF said.

“An urgent expressions of interest campaign for the sale of the business has commenced with

EOIs due to be submitted by 20 September, 2021.’’

ASIC records show the directors of the business are co-founder David Roper and Crescent Capital Partners managing partner Michael Alscher.

Crumpler’s bags are known for their sturdy design. Picture: Supplied

Crescent is the major owner of the business with a stake of about 70 per cent.

PKF said Crumpler had 11 active stores in Australia, “the majority of which are closed due to the lockdown as a result of the Covid-19 outbreak, however three are still operating a click and collect service.

“It also operates out of a warehouse which fulfils online and corporate orders and has a

head office (in) Melbourne.

“The company is also the 100 per cent shareholder of Singaporean and Malaysian entities which operate additional retail and online stores and are continuing to trade.’’

The company’s most recent financial report, for the 2019 financial year but lodged with ASIC in April this year, says the company had to shut its stores across Australia and Southeast Asia for six weeks from late March 2020, although the company’s online sales “experienced a strong uplift ... over this period’’.

The company made a net loss of $8.45m in the 2019 financial year following a loss of $8.51m the previous year, and its current liabilities exceeded its current assets by $15m at the end of the reporting period. Revenue had increased from $19.7m to $21.7m.

“The group’s key shareholder, Crescent Capital Partners, have given an undertaking that Crescent Capital Partners will provide sufficient financial assistance to the group as and when it is needed to enable the group to continue its operations and fulfil all of its financial obligations,’’ the report says.

“This undertaking is provided for a minimum period of 12 months from signing of the group’s financial report.

“On this basis, the directors have deemed it appropriate to prepare the financial statements on a going concern basis.’’

The report says that subsequent to June 30, 2019, it received two capital injections in August of that year, each in the order of $300,000.

The company said in the report that it had received government support measures such as JobKeeper in Australia and overseas, but the pandemic made it difficult to accurately predict the future performance of the business.

Crumpler was born when Stuart Crumpler began working as a bicycle courier for Minuteman Messengers, owned by David Roper and William Miller, both originally from Adelaide. Mr Crumpler, a painter, sculptor and furniture maker, offered to help design a messenger bag for the company.

Crumpler was initially best known for its bicycle courier-style bags but for many years has offered a wide range of bags and travel accessories.

Mr Roper told News Corp Australia in 2011 that one of the goals for the original courier bag was the desire to create a bag hefty enough to carry a slab of beer, which Mr Crumpler was working on on his grandmother’s sewing machine.

The key design innovation was a system called the “third leg’’ - an extra strap that would stop the bag moving around during riding.

The trio set up a workshop in Flinders Lane in Melbourne, initially supplying bike couriers, followed by the company getting a break with a chain of streetwear stores in Melbourne that agreed to stock its products on consignment.

Mr Crumpler reportedly sold his share in the business to the other two founders in 2011 with Crescent buying a stake in 2014.

Crumpler and Tigerlily Chief executive Adam Wilkinson left the business last month for a role as general manager - new business at The PAS Group, which includes brands such as Lonsdale, Yarra Trail and Everlast, sold through its outlets such as Black Pepper and Designworks.

Originally published as The administrator of travel goods brand Crumpler is seeking an ‘urgent’ sale of the business