Lorraine Lea Linen, which has been operating for almost 40 years, has gone bust. Despite going into administration, the company still operates.
The company was founded in 1986 in Melbourne and is owned by a family.
The company is known for its “Lorraine Lea” themed parties, which were very popular during the 1990s.
This marketing strategy involved getting ambassadors to host events, where they would sell the company’s products.
In the past few years, these ambassadors have also started using social media to promote the company.
Due to the company’s popularity, it has been considered a multi-level marketing business, which is allowed under Australian law.
This type of business involves paying a commission to its sales representatives.
In 2015, it was reported that over 40,000 parties were held annually for the company.
According to the company, it had over 1300 sales representatives across Australia.
Tim Bradd and Andrew Yeo of Pitcher Partners were appointed as the administrators of Lorraine Lea Linen.
In a statement, Mr Yeo noted that the company’s operations are still going on.
In addition, the administrators noted that they are working on fulfilling all orders that were made before they were appointed.
They also launched a 50% off sale on all products. Mr Yeo said that the company’s online sales had exceeded expectations.
The administrators noted that they are still working on the company’s potential sale.
They urged customers to place their orders while the stock is still available.