Australian brand manufacturer Hiro Brands has taken the difficult step of entering voluntary administration, leaving 120 employees facing an uncertain future, according to a report by 7NEWS.
The company, recognized for its diverse range of Australian products, spanning cleaning supplies, personal care items, and cosmetics, decided to enter administration on January 2.
Why Hiro Brands Entered a Voluntary Administration
Hiro Brands is the driving force behind several well-known brands in Australia, such as Organic Choice, Orange Power, Aware Sensitive, Trix, ulta3, MUD, Billie Goat, and Aus Medic Co.
Voluntary administrators from KPMG Australia, namely David Hardy, James Dampney, and James Stewart, have been appointed to oversee the proceedings.
David Hardy acknowledged the impressive portfolio of leading personal care, cosmetic, and household goods brands under Hiro Brands, which Australian consumers regularly utilize. Regrettably, he noted that the company's financial situation, post-appointment, couldn't sustain ongoing trading activities.
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"Employment Arrangements"
In response to these challenges, administrators have made the difficult decision to terminate the "employment arrangements" of most of the company's workforce, impacting around 120 individuals, as per 7NEWS' report.
Hardy underscored their immediate focus on securing buyers for Hiro Brands Group's assets, which include valuable brands and intellectual property. He committed to collaborative efforts with all stakeholders, such as employees, suppliers, and customers, to optimize the overall outcome in these challenging circumstances.
The entry into voluntary administration underscores the financial pressures and operational challenges Hiro Brands faces. It signals a critical juncture for the company, with the administrators now tasked with navigating a path forward that safeguards the interests of all involved parties.
The fate of the well-known Australian brands under Hiro's umbrella, such as Organic Choice and Orange Power, remains uncertain as administrators work to explore potential avenues for the company's assets.
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