Aussie linen brand enters administration faces uncertain future
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As we navigate the ever-changing retail landscape, it's with a heavy heart that we report on the latest development that may affect many Australian homes.
Lorraine Lea Linen, a popular name in home textiles that has graced our bedrooms and living spaces for nearly four decades, has entered voluntary administration.
This news comes as a shock to many who have come to rely on Lorraine Lea's reputation for high-quality, affordable linen and homewares.
The company took a step many businesses dread: it appointed Andrew Yeo and Tim Bradd of Pitcher Partners Melbourne as administrators.
'Lorraine Lea Linen is an iconic National brand many Australians have in their homes,' Yeo expressed.
‘It’s obviously a sad moment for the business owners, given they fought through the COVID lockdowns, which hit the business hard, but they have made the decision to enter Administration.’
‘Our role as Administrators is to realise the stock to pay creditors - and we have been overwhelmed by the response from customers.’
The company had been battling the economic repercussions of the COVID-19 lockdowns, which significantly impacted its operations.
Despite the challenges, the owners fought valiantly to keep the business afloat.
However, the time came to face the reality of the situation and make the tough call.
As administrators, Yeo and Bradd's immediate responsibility is liquidating the stock to repay creditors.
The response from customers has been nothing short of remarkable, with nearly 4000 orders placed in the wake of a 50 per cent off sitewide sale aimed at clearing stock.
‘Since Monday afternoon when we launched the 50 per cent off all stock clearance, we have had nearly 4000 orders and more are arriving every hour. Well over $1 million of quality linen and towels have been sold in just three days,’ Yeo reported.
‘We are now also preparing the company for sale, and we are optimistic of a positive outcome given the strong brand name for Lorraine Lea.’
‘There is a clear market for high-quality linen, and this is an opportunity for someone to take on an iconic local business that is well-loved by many.’
Founded in 1986 by Peter and Heather Ryan in their Melbourne home, Lorraine Lea built a unique direct-selling industry using social media and home styling events to connect independent stylists with customers.
At its peak, the company boasted 1300 stylists and hosted over 40,000 parties, touching the lives of hundreds of thousands of customers across all states and territories.
In other acquisition news, the Quinn family purchased the Iconic Australian dessert brand Sara Lee Australia after it entered voluntary administration last year.
Administrators and employees are pleased with the sale process, highlighting the support of staff and consumers during the transition. Read more about it here.
How do you think this development might affect your own experiences with homewares or shopping for similar products in the future? Let us know in the comments below.
Lorraine Lea Linen, a popular name in home textiles that has graced our bedrooms and living spaces for nearly four decades, has entered voluntary administration.
This news comes as a shock to many who have come to rely on Lorraine Lea's reputation for high-quality, affordable linen and homewares.
The company took a step many businesses dread: it appointed Andrew Yeo and Tim Bradd of Pitcher Partners Melbourne as administrators.
'Lorraine Lea Linen is an iconic National brand many Australians have in their homes,' Yeo expressed.
Lorraine Lea Linen, a well-known Australian brand, has entered administration after almost 40 years. Credit: Facebook
‘It’s obviously a sad moment for the business owners, given they fought through the COVID lockdowns, which hit the business hard, but they have made the decision to enter Administration.’
‘Our role as Administrators is to realise the stock to pay creditors - and we have been overwhelmed by the response from customers.’
The company had been battling the economic repercussions of the COVID-19 lockdowns, which significantly impacted its operations.
Despite the challenges, the owners fought valiantly to keep the business afloat.
However, the time came to face the reality of the situation and make the tough call.
As administrators, Yeo and Bradd's immediate responsibility is liquidating the stock to repay creditors.
The response from customers has been nothing short of remarkable, with nearly 4000 orders placed in the wake of a 50 per cent off sitewide sale aimed at clearing stock.
‘Since Monday afternoon when we launched the 50 per cent off all stock clearance, we have had nearly 4000 orders and more are arriving every hour. Well over $1 million of quality linen and towels have been sold in just three days,’ Yeo reported.
‘We are now also preparing the company for sale, and we are optimistic of a positive outcome given the strong brand name for Lorraine Lea.’
‘There is a clear market for high-quality linen, and this is an opportunity for someone to take on an iconic local business that is well-loved by many.’
Founded in 1986 by Peter and Heather Ryan in their Melbourne home, Lorraine Lea built a unique direct-selling industry using social media and home styling events to connect independent stylists with customers.
At its peak, the company boasted 1300 stylists and hosted over 40,000 parties, touching the lives of hundreds of thousands of customers across all states and territories.
In other acquisition news, the Quinn family purchased the Iconic Australian dessert brand Sara Lee Australia after it entered voluntary administration last year.
Administrators and employees are pleased with the sale process, highlighting the support of staff and consumers during the transition. Read more about it here.
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