Festive damper as Christmas hamper company collapses owing $830,000
A Christmas hamper company has gone into administration placing the deposits of over 1,600 customers in jeopardy.
Andrew Cummins and Antony Resnick of BRI Ferrier were appointed as administrators of Hamper Magic earlier this month.
Hamper Magic is a Christmas hamper layby company and its website describes it as "proudly 100% Australian owned and operated".
It competed with companies including Chrisco Hampers and Hamper King for the lucrative Christmas hamper trade.
Hamper Magic's hampers start from $1.53 per week for a "beans and spaghetti" hamper to $39.98 per week for the "mega" hamper with a total cost of $1,399.
The company had over 1,100 customers for Christmas last year and 1,600 were already signed up, having paid deposits for the coming Christmas.
Louisa Sijabat, manager at BRI Ferrier, told SmartCompany Hamper Magic owed $830,000 to creditors, which are mainly trade suppliers.
"The administrators are conducting an urgent review of the business, its financial position and its operations," she says.
"The administrators are actively seeking to sell the business and or assets of Hamper Magic and are currently speaking with several prospective purchasers."
Sijabat says the administrators are currently seeking to protect the deposits of the 1,600 customers for Christmas this year.
"The administrators are encouraging prospective purchasers to consider taking over the deposits paid by customers for 2013 hampers in their offer to purchase the business and or assets of Hamper Magic."
As Hamper Magic's business is highly seasonal it only has four employees and Sijabat says before BRI Ferrier was appointed the employees were told by Hamper Magic's director that he would prefer if they did not come into the office.
"Employees are looking for a payment of outstanding entitlements either from a sale of the business or the federal government's GEERs scheme," she says.