Retail giant Officeworks says it was proud to have invested in Brisbane-based social enterprise Circonomy, which entered creditors’ voluntary liquidation at the end of last week.
Officeworks was a long-time partner of Circonomy and formalised this partnership by taking a 21% stake in the business in early 2022.
On Tuesday, a spokesperson for Officeworks told SmartCompany the liquidation of Circonomy is “very sad” and acknowledged all of Circonomy’s employees for their “hard work and contribution”.
At the same time, the office suppliers retailer said it remains committed to participating in the circular economy and “finding opportunities to transform what may be seen as waste, into valuable resources”.
Circonomy founder Yas Grigaliunas shared the “difficult decision” to place her business in liquidation on LinkedIn, in a statement that referenced the “nation’s retail downturn”.
“Despite the best endeavours of the team to increase sales and reduce costs, the business was no longer financially viable,” said the company.
Liquidators from BRI Ferrier were appointed to the business on October 4, with James Taplin and Stefan Dopking now in the process of assessing Circonomy’s operations ahead of a possible sale.
Taplin confirmed to SmartCompany that Circonomy’s two stores are no longer open to the public, after the liquidators moved to stand down operations over the weekend.
They are now in discussions with the landlords for the two premises in Brisbane and Melbourne to sell down the company’s stock through Circonomy’s existing online channels.
“At the same time, we will work to realise the business and/or its intellectual property,” he added.
Taplin confirmed the company has 42 full-time and casual employees and owes approximately $2.5 million to creditors, although claims against the company are still being assessed.
At this stage, the liquidation “appears to be a result of a downturn in the retail industry, where the discretionary spend is down”, said Taplin.
Circonomy was launched under its current name by founder Grigaliunas in 2022, with the business having evolved from charity fundraiser World’s Biggest Garage Sale (WBGS), which Grigaliunas founded in 2013.
As its name suggests, WBGS focused on repairing, repurposing and reselling second-hand goods, with a goal of reducing waste and improving sustainability.
The charity later became a social enterprise and began working with the likes of Officeworks and Catch to save surplus and cosmetically damaged goods from landfills.
It operated a long-run store in Brisbane and opened one in Melbourne in late 2023, which also offered refurbished tech, furniture and office supplies in what it called a “shop second, first” model.
Circonomy had also operated a collection and refurbishment centre in Richmond, Melbourne, since February 2023, and had shared plans to open a Sydney site in 2024 as part of a national expansion plan, supported by Officeworks.
In the statement announcing the company’s liquidation, Grigaliunas thanked “all who have been part of this journey – our team, our partners, and our shareholders”.
“Your belief in our mission has been the driving force behind every milestone we’ve achieved,” she said.
“Our focus is now on supporting our employees through this process, in any way we can. We understand the impact this decision will have on them and we do not take it lightly.
“While this is not the outcome we had hoped for, we are proud of the positive impact Circonomy has made. The lessons learned and the connections forged will continue to influence the circular economy landscape.”
SmartCompany has contacted Circonomy for further information.
Never miss a story: sign up to SmartCompany’s free daily newsletter and find our best stories on LinkedIn.
Editor
Eloise is an experienced business journalist and editor, who has held senior editorial roles at SmartCompany since 2014. Prior to joining SmartCompany, Eloise was news editor at Books+Publishing, the trade press for the Australian book industry. Eloise has degrees in media and communications, marketing and business management, and political science. You can follow her on LinkedIn, and Twitter at @ellykeating.
Comments