Homeware brand Ishka was sold as part of a deed of company arrangement approved by creditors.
Cor Cordis was appointed voluntary administrator of Ishka, an established homeware brand in Australia selling homewares, gifts, handmade crafts, clothing, and jewellery. Ishka continued trading while it was experiencing complex challenges, which were further compounded by the nationwide COVID-19 lockdowns in 2020/2021. Ishka also had secured debt owing to a major financial institution of c$8m.
The initial scope involved evaluating Ishka’s operations and determining its feasibility of ongoing trade. As administrators, our goal was to initiate an expression of interest campaign for the recapitalisation and/or sale of the business and its assets. Our aim was to secure ongoing employment for its staff and to optimise returns for the company’s creditors.
Operating the business during the COVID-19 lockdowns and ongoing restrictions presented us with unique challenges, which persisted for several weeks after following our appointment. Our strategic approach included:
We successfully submitted a court application to extend the convening period to enable the successful sale and restructure of the business to be formulated as part of a deed of company arrangement approved by creditors, including a labour hire agreement.