New Zealand-born kids shoe brand Bobux International has been placed into receivership, with the Bank of New Zealand appointing Conor McElhinney and Andrew Grenfell - partners at advisory firm McGrathNicol NZ - as receivers and managers.
The partners are currently seeking buyers as it manages the brand's assets.
In a statement obtained by Ragtrader, McGrathNicol NZ said the sale process may affect the company’s 25 New Zealand employees, although the receivers are hopeful that the business will be sold.
There are also eight employees in Indonesia, where Bobux’s factories and warehouse are located, and one in each of Australia and Denmark.
The business reportedly suffered significant supply chain disruptions from COVID-19 that resulted in overstocking to combat delays and challenges with an IT system overhaul, the statement continued.
These challenges are said to be exacerbated by a slowing economy, with record low consumer confidence levels being seen in key markets such as the United Kingdom, Australia, Europe, and New Zealand.
As a result of these pressures, the business was unable to secure ongoing funding for losses and consequently requested that the group be placed into receivership.
“This is a tragic outcome for our staff, suppliers, and customers after putting our hearts and souls into the business for 30 years,” Bobux co-founder Chris Bennett said.
“Our sincere hope is that a buyer can be found to take Bobux forward.”
Bobux was founded by Chris and Colleen Bennett in 1991. The brand is now sold online and through stockists across New Zealand, Australia, Europe and America.
It reportedly has a total annual sales of over NZ$20 million through its B2B, B2D and B2C channels.
The receivers will be trading Bobux whilst they pursue a sale of the brand and a liquidation of its remaining stock.