Background: Kikki.K is the pricey stationery brand that sells Swedish-style notebooks, diaries, pens, planners etc. Ya know, the ones that feature inspirational quotes, like 'Love yourself like your life depends on it'.

What happened: Kikki.K was founded in Melbourne back in 2001. And once upon a time, this crew were thriving. But the company collapsed for the first time in March 2020, but were saved by a US company.

What else: Fast-forward 17 months and Kikki.K found itself in voluntary administration once again. But new reports show the administrators have received 9 offers, and are in talks to ink a deal to save the company.

So what's the key learning?

💡When a company can't pay its debts when they are due (*cough* Kikki.K *cough*), it's deemed insolvent.

💡And when companies become insolvent...they've got a couple options to choose from:

1. They can go into liquidation. In other words, all the company's assets are sold to pay its debts. And then the company gets deregistered, and ceases to exist.
   
   
2. They can go into voluntary administration. In other words, an administrator is appointed to the company to take a look at the company's assets and debts, and make a recommendation about its future.

💡When a company is in voluntary administration, other companies can swoop in and buy it - and usually at a bargain price. That's what could happen with Kikki.K now.