In genuinely tragic news to quirky stationary lovers everywhere, kikki.K is going into voluntary administration again due to the effects of lockdown on their sales.
According to The Australian Financial Review, kikki.K co-founders Kristina Karlsson and Paul Lacy wrote to staff letting them know that the company was going under again, the second time since the pandemic began.
“Today is a sad day. Writing this note together is a sad task and we still can’t quite believe it’s happening – again,” Karlsson and Lacy wrote.
“It’s yet another tough moment in our amazing journey together and we understand and deeply regret that there will profound impacts for many of our amazing team members and our partners, suppliers and shareholders.”
They went on to clarify the reason for the company’s collapse: lockdown closures.
“The loss of revenue from the forced and extended closure of so many of our stores due to the Covid pandemic as part of the government ordered lockdowns has taken a direct massive and insurmountable toll,” they said.
“To be clear, this result has been a direct consequence of the pandemic and the unprecedented, devastating financial consequences of past and current store lockdowns, and the prospect and risk of extended closures with no clear end in sight.
“It has simply not been possible to get through such a seismic event outside of our control.”
In a statement, Lacy added that unfortunately this was just one lockdown too many for the business to stay afloat.
“It’s been a massive battle for business survival in recent months,” he said.
“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.
“It’s devastating that the pandemic has had this impact on the business.”
kikki.K has 36 stores across Australia and New Zealand but about half of them are closed for lockdown, and a lot of their 300 staff members have sadly already lost their jobs. The company will keep trading online while administrators assess options for the business.
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