Everything You Should Know About Hiro Brands’ Collapse 🍊
Some sad news to start the year: Hiro Brands, producers of one of the most popular household cleaning items in Australia, has financially collapsed, with up to 120 staff laid off this early 2024. This piece of news, of course, sent shockwaves all across Australia, more specifically to Aussie shoppers who strongly prefer using their cleaning products. What do you think happened? In this blog, we will cover everything you should know about the Hiro Brands’ collapse, so read on below to learn more.
Hiro Brands News 🍊: If you frequent giant supermarkets like Coles and Woolworths, you have definitely encountered Hiro Brands’ household cleaning products on the shelf. I would even bet on the fact and say that plenty of you have used it in your respective houses.
For those who are unfamiliar with Hiro Brands, it is a brand that is known to provide a wide range of cleaning products. They also provide other products such as personal care and cosmetic care items.
Recently, they have made the headlines, ceasing their operations. So, what do you think happened? Below, we will cover every important detail that you should know about the unfortunate news about Hiro Brands.
Hiro Brands news on their collapse: everything explained
Hiro Brands, a notable Australian household brand manufacturer renowned for its wide array of products encompassing personal care, cosmetic, and household essentials, including the Orange Power cleaning products, Aware Sensitive washing powder, Trix dishwashing liquid, the environmentally friendly Organic Choice cleaning and laundry items and the trendy ulta3 cosmetics brand, unfortunately faced a severe setback as the company collapsed, leading to the distressing dismissal of approximately 120 dedicated staff members from their positions.
This unfortunate Hiro Brands news came as the company opted for voluntary administration on January 2, seeking guidance and assistance by appointing a team comprising David Hardy, James Dampney, and James Stewart from KPMG Australia to navigate the challenging circumstances.
In a statement they provided to news.com.au, Mr Hardy said that the administrators had “ceased operations after completing an urgent assessment of its financial position”.
KPMG restructuring partners David Hardy, James Dampney and James Stewart have assumed day-to-day control of the company and are currently seeking a buyer for the business.
“Regrettably, following our appointment it became evident the financial position of the business would not allow the continuation of trading activities. As a result, we have terminated most employees’ employment arrangements,” Hardy mentioned.
He added “We are urgently seeking buyers for the Hiro Brands Group’s assets, including brands and intellectual property. We will be working with all stakeholders, including employees, suppliers and customers, to maximise the outcome.”
More on Hiro Brands news
Specialising in the eco-conscious market segment, the company strategically targets consumers inclined towards natural ingredients, steering its focus on skincare under brands like Billie Goat and Aus Medic Co, personal care items marketed as Bodytools, Medi Manager, Chuckies and The Wheat Bag, as well as cosmetics lines such as ulta3, MUD and OZK.O Eyewear.
A substantial portion of Hiro’s diverse product range finds its distribution channels through prominent retailers like Chemist Warehouse, TerryWhite, and Priceline.
As part of the ongoing developments, the company anticipates convening its initial creditors meeting on January 11. Prior to the appointment of administrators, Quality Blow Moulders, a plastic bottle manufacturer, lodged a petition on November 6, seeking the winding up of Hiro Brands.
Not the first time?
This unfortunate collapse by Hiro Brands doesn’t mark the first instance of business adversity for the company. Much like the latest news this 2024, Hiro Brands has already closed once.
Previously known as Wellness and Beauty Solutions, the entity previously managed a network of cosmetics clinics that endured significant challenges due to pandemic-induced lockdowns.
This ordeal led to the company entering administration in March 2021, ultimately resurfacing in December of the same year.
In that timeframe, an external administrator named Lawrence Fitzgerald, representing the insolvency firm William Buck, authorised payments totalling nearly $1.2 million. Among these disbursements, approximately $270,988.65 was allocated towards compensating the company’s employees.
Hiro Brands news: leading up to the collapse
The corporate rebranding to Hiro Brands Group took place on August 29, 2022, and continued for a bit before the news you see today.
Whilst the 2022 financial year showcased a reported profit of $5.4 million, this figure was largely attributed to an exceeding $8 million in debt forgiveness. However, the company faced significant challenges, witnessing net cash outflows of nearly $2 million and grappling with net current liabilities totalling $2.3 million throughout this period.
“There is a material uncertainty that may cast significant doubt on the group’s ability to continue as a going concern, and, therefore, that it may be unable to realise its asset and discharge its liabilities in the normal course of business,” as stated by an auditor report prepared by PwC partner Paul Lewis in October 2022.
In early 2023, Steven Chaur, the CEO of Hiro Brands and a former executive at Four ‘N Twenty pies, expressed to Retail Beauty his ambitious strategy to triple the company’s revenue and expand its market presence significantly.
Some final info on Hiro Brands news
Some more notable information about this piece of news: Hiro Brands purportedly aimed for an ASX debut in 2022, envisioning itself as a comparable entity to the now-defunct cosmetics giant BWX, recognised for acquiring Zoe Foster Blake’s Go-To Skincare for $89 million. However, these initial public offering (IPO) aspirations were eventually put on hold.
Approximately 80 per cent ownership of Hiro Brands is attributed to the private equity firm BRC Capital and entrepreneur Lyndsey Cattermole. In April of the previous year, the duo injected a reported $15 million into the company, a detail highlighted by the Australian Financial Review.
Notably, Cattermole concluded her tenure as a director in early December, while Paul Docherty, the founder of BRC Capital, currently stands as the sole director of the company. Attempts to reach out to BRC Capital for commentary have been made.
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