Australian bag brand Crumpler has appointed voluntary administrators and is up for an urgent sale, after the company determined its current cash flow couldn’t keep it afloat.
PKF Melbourne’s Jason Stone and Glenn Franklin were appointed as administrators at a board meeting on 31 August, and are hopeful that a sale will occur on a going concern basis.
“The main contributors towards the cash glow 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,” Stone said in a statement.
“Once a contract of sale is executed and price determined, the administrators will determine the likely return to unsecured creditors.”
The company currently has 11 stores, most of which are closed, and also operates Singaporean and Malaysian entities which have their own stores and are continuing to trade.
Crumpler’s former CEO Adam Wilkinson left the business, as well as his role as CEO at Tigerlily, in August to take up the new position of head of new business at PAS Group.
Tigerlily replaced Wilkinson’s absence with the hiring of former Esther & Co general manager Travis Wright.