kikki.K's international expansion left it paying overseas leases when the crunch came

National stationery retailer kikki.K was placed into receivership in March 2020, with receivers Cor Cordis appointed and about 450 jobs at risk. Founded in 2001 by Swedish-born entrepreneur Kristina Karlsson, the company had revenues of about $80 million and roughly 65 stores across Australia, plus a handful of locations in the UK, Hong Kong and New Zealand — the legacy of a 2016 decision to expand the business internationally.

Management blamed a 'perfect storm': Brexit in the UK, civil unrest in Hong Kong, a 'profound structural change' toward online shopping, a poor Christmas, bushfires and finally the coronavirus. Chief executive Paul Lacy cited the 'triple-whammy of soft consumer demand, the business impact of bushfires and more recently the unprecedented and profound impact of coronavirus'. Receiver Barry Wight also blamed high leasing costs.

The company had been close to a capital deal with a large global partner before the collapse but 'ran out of time', forcing it into administration. Karlsson called kikki.K still an 'amazing business opportunity' needing a 'big re-set and a buyer who understands the opportunity', and said the team remained determined to find the right new partner. It followed Bardot, Jeanswest, Colette by Colette Hayman and Harris Scarfe into distress that year.

Overseas stores turned every external shock into a direct fixed-cost problem: UK leases met Brexit, Hong Kong stores met civil unrest, all while mall rents stayed high at home.

A capital raise was pursued as the rescue rather than earlier retrenchment, and it 'ran out of time' as the pandemic hit.

The structural shift to online shopping eroded the mall-stationery model the expansion had doubled down on.

International leases are fixed costs with no pause button: expanding into three overseas markets in 2016 turned every later shock — Brexit, protests, pandemic — into a rent bill.

Cor Cordis said it hoped to restructure or sell the company as a going concern, with stores trading as usual while a buyer was sought.