Iconic New Zealand kids shoe company Bobux has been placed into receivership as a result of ongoing inflationary pressures.
The beloved brand was started in New Zealand in 1991 and is now sold online and through stockists in over 40 countries with dedicated major markets across Australia, New Zealand, Europe, and the United Kingdom.
Bobux was placed into receivership with BNZ appointing McGrathNicol NZ as receivers and managers. Partners Conor McElhinney and Andrew Grenfell have been appointed and are currently seeking buyers.
The business suffered an unrecoverable drop in demand following Covid and significant supply chain disruptions that resulted in overstocking to combat delays and challenges with an IT system overhaul. These challenges were exacerbated by a slowing economy, with record low consumer confidence levels being seen in key market, and as a result, the business was unable to secure ongoing funding for losses and requested that the group be placed into receivership.
Bobux reportedly has a total annual sales of over NZ$20 million through its B2B, B2D and B2C channels.
According to Ragtrader, McGrathNicol NZ has said that the sale process may affect the company’s 25 New Zealand employees, although the receivers are hopeful that the business will be sold.
In Australia, Bobux operates a dedicated warehouse, the fate of which is uncertain at this time. There are also eight employees in Indonesia, where Bobux’s factories and another warehouse are located, and one in each of Australia and Denmark.
“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.”
The receivers will be trading Bobux whilst they pursue a sale of the brand and a liquidation of its remaining stock.
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