16 June 2016
The company behind the popular baby sling brand, Hug-a-Bub, has collapsed into voluntary administration.
Hug-a-bub Australia Pty Ltd, which was incorporated in 2001, has temporarily ceased trading and is not currently taking orders, after appointing Brendan Nixon of Stanley Morgan Accountants as voluntary administrator on June 13.
The New South Wales-based company, which was founded by childbirth educator Suzanne Shahar and designer Tania Palmer, makes baby slings, carriers and wraps from organic fabrics, with prices starting at $89.
The products have a cult following among new parents and more than 10,000 fans on Facebook and Instagram.
According to the Hug-a-Bub website, the products are distributed via approximately 170 stockists across the country, including retail chains Baby Bunting and Toys R Us, although administrator Brendan Nixon was unable to confirm the number of stockists.
Nixon told SmartCompany it is still too early to determine the exact cause of the company’s financial situation but said he has been provided with a list of approximately 20 creditors that are owed money, including the Australian Tax Office.
These creditors have been notified of the appointment of external managers and Nixon he expects to start receiving claims from creditors over the next week.
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