An online furniture firm with stores in Sydney and Melbourne has gone into administration.
Restructuring company KordaMentha has blamed COVID-19 for the demise of Brosa. It says it’s looking for a buyer for the business.
Administrator Richard Tucker said the firm boomed online during COVID-19 lockdowns, tripling in size, but then fell into “cashflow” problems.
“The business faced challenges when sales declined after the COVID-19 restrictions were lifted,” Tucker, said.
“This caused short-term cash flow pressures after a period of phenomenal growth.”
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He said he expects there will be ”strong interest” from buyers.
The administrators told nine.com.au it is reviewing orders that have been paid for to establish whether the stock is available.
They also accept responsibility for orders placed from today and will offer refunds if stock is unavailable.
The company says on its website it was set up as amid a “desire to change the furniture industry for the better,” and said it aimed to sell “practical design-led furniture without an inflated price tag”.
