Lorraine Lea Linen enters voluntary administration
An iconic Australian linen retailer has collapsed after almost 40 years.
Lorraine Lea Linen entered voluntary administration on Monday, appointing Andrew Yeo and Tim Bradd of insolvency firm Pitcher Partners Melbourne as administrators.
“Lorraine Lea Linen is an iconic National brand that many Australians have in their homes,” Yeo told 7NEWS.com.au.
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By continuing you agree to our Terms and Privacy Policy.“It’s obviously a sad moment for the business owners, given they fought on through the COVID lockdowns which hit the business hard, but they have made the decision to enter Administration.
“Our role as Administrators is to realise the stock to pay creditors - and we have been overwhelmed by the response from customers.”
The business continues to trade, and earlier this week, it launched a 50 per cent off sitewide sale to clear stock.
“Since Monday afternoon when we launched the 50 per cent off all stock clearance, we have had nearly 4000 orders and more are arriving every hour. Well over $1 million of quality linen and towels have been sold in just three days,” Yeo said.
“We are now also preparing the company for sale, and we are optimistic of a positive outcome given the strong brand name for Lorraine Lea.
“There is a clear market for high-quality linen, and this is an opportunity for someone to take on an iconic local business that is well-loved by many.”
Any interested parties are encouraged to contact administrators.
Founded by Peter and Heather Ryan at their home in Melbourne’s southeast in 1986, Lorraine Lea’s aim was to deliver “high-quality, affordable linen and homewares with a focus on creating warm and inviting homes”.
The company operates in the direct selling industry - working with “Lorraine Lea independent stylists” who share products with their network through social media and home styling events.
Headquartered in Scoresby in Melbourne’s east, the business, at one point, claimed to have 1300 stylists hosting more than 40,000 parties with hundreds of thousands of customers in all states and territories.
Originally published on 7NEWS
