Homewares retailer Earthborn collapses into liquidation

A homewares business that had been operating for just over 20 years has collapsed into liquidation.

Earthborn Pty Ltd appointed external managers late last month, with David Stimpson and Terrence Rose from SV Partners appointed joint liquidators.

Earthborn has more than 10 retail stores across Queensland, including in the Indooroopilly Shopping Centre, Westfield Clarindale and Cairns Central.

The company’s website and Facebook page are currently offline.

Staff at the Indooroopilly store were sent a letter advising them to shut down with only a day’s notice, according to The Herald Sun.

Seven other company-owned stores have reportedly closed, however, SmartCompany was not able to confirm this information with the liquidators.

Franchise-run stores in Tweed Heads, Kawana and Harbour Town continue to trade because they are independently owned, according to the Herald Sun.

Earthborn was established around 21 years ago when its founders, Philip and Patricia Walker, began selling ceramics at their local market.

The directors reportedly sold their multi-million dollar home a few months before liquidators were appointed to the Earthborn business, according to The Courier Mail.

Earthborn is not the first homewares business to fall on tough financial times in recent months.

Earlier this year, home furnishings company Laura Ashley collapsed into voluntary administration and 12 of the retailer’s outlets have ceased trading.

In September, the Moss River homewares retail chain, which had been operating since 1975, fell into the hands of external managers.

SmartCompany contacted SV Partners for comment but did not receive comment prior to publication.

SmartCompany was unable to contact Philip or Patricia Walker for comment.

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Bill
Bill
4 years ago

Is it just me or are there more business’ going in to liquidation than ever before? Smart Company seems to report a new one nearly every day.
Our business seems to be squeezed on profits more than ever but our overheads seem to rise all the time. Cant just keep sacking people to keep the overheads down.

Justin Tyme
Justin Tyme
4 years ago

Bill is correct with his observation. Although all the clever people continue to talk up the economy and report seasonally adjusted unemployment as being satis factory, this is misleading. The stats don’t record those many thousands of workers who operate under contract, sham or real.

Our economy is in a terrible state and if the Governments, state and federal were not spending, we would be in recession. That is what the facts show. Our federal parliament is unable to pass legislation to repair the system that Mr Rudd and most sadly Miss Gillard foist on us and now we see thes collapses. Business after operating successfully for many years, now find they can’t afford to downsize as they have unfunded redundancy costs to pay out, so electing to go for liquidation is the most cost effective option for many.

The expectations of those unemployed or on a benefit of any kind are a cost we cannot carry in a depressed world economy. Easy in good times, impossible in bad.

We have to fix the senate so we can reduce the burden on small business else we will continue this downward spiral.

Rohan
Rohan
4 years ago

It’s all over. Our beloved communist overlords have won the day. Expect more of this. Today I get notified by a customer who is large chain retail group, asking if we are implementing the 15 cent per litre levy on paint products as per the Paintback scheme. What the…? First time that we, a small specialty manufacturer had heard of it.

After a little digging, it turns out this 2nd May “participating” paint companies will charge a 15 cent per litre levy to deal with the disposal of unused product. So the 5 main paint companies who are “participating” set up the Australian Paint Manufacturers Association who in turn set up corporation to “manage” the scheme. This will replace the function of the council municipal waste stations collecting it. I think there’s a term for this. It starts with Crony and the second word is…

Anyway, it appears that this will be a mechanism to hold to all other paint manufacturer heads. Sign up or else face oblivion cause your product wont be accepted by the big chain. But it’s all “voluntary”. This has been sanctioned by the ACCC, yet reeks of a cartel operation.

Oh an lets not forget about the additional compliance cost of the scheme. Yet another one.

The draft submission which has been approved is found here. All 197 glorious pages of mostly legalese to stifle growth.

http://registers.accc.gov.au/wp-content/index.phtml/itemId/1187728/fromItemId/278039/display/application

Adam Way
Adam Way
4 years ago

This is a sad reality! There are lot of companies who declares bankruptcy because assets and liabilities are not properly managed. Business debt can come about very easily. A few slow months and all of a sudden the debt is a long way beyond the reach of the company owner. If you are having financial issues my advice is that you please talk to a professional – it is what helped me get my life back together. Try talking to the people at http://www.bankruptcyexperts.com.au.