Troubled swimwear brand Tigerlily has become the first retail victim of the coronavirus, with the company entering voluntary administration on Monday.
With 30 stores across Australia, Tigerlily employs some 200 people, and while the intentions of the administrator are for the stores to continue to trade, some are inevitably set to close.
In a statement circulated on Monday, restructuring agents Scott Langdon and Jenny Nettleton from KordaMentha confirmed they would administer the process.
Mr Langdon directly confirmed that COVID-19 was the chief reason for the retailer’s collapse, citing a significant reduction in sales since the pandemic began.
“A sale of business process will commence immediately and we expect a high level of interest in the business given the strong brand and its reputation,” Mr Langdon confirmed.
It is understood that the retailer will continue to trade, but that some stores will shut, although no specific numbers or locations were given.
Founded in 2020, Tigerlily is a well-known Aussie swimwear brand that evolved into a clothing store for mainly holiday-inspired attire.
The company is now wholly owned by private equity company Crescent Capital Partners, after it was purchased from Billabong for $60 million in 2017.
Local media have been speculating that the company has been in financial trouble for some time.
Unfortunately, Tigerlily has joined a long list of companies that have entered administration in 2020, including most recently Melbourne-based stationary chain kikki.K, which left 450 jobs in limbo.
In a statement issued earlier this month, the store’s co-founder, Kristina Karlsson, said that “it is with profound regret and sadness that we take this action”.
Prior to the kikki.K, among those announcing voluntary administration were Collette by Collette Hayman, Ishka, Jeanswest, Harris Scarfe, Bardot and Curious Planet.
Maja Garaca Djurdjevic is the editor of My Business.
Maja has an extensive career as a journalist across finance, business and market intelligence. Prior to joining Momentum Media, Maja spent several years unravelling social, political and economic intricacies in Eastern Europe.
- Australian manufacturers can create their own stimulus
- Here’s what separates success from the rest
By Adam Zuchetti
- 5 workplace trends to watch in 2020
By Nicole Gorton