The vision to grow Australia’s first recovery, repair and resale service to support a zero-waste retail sector has been delivered a blow after voluntary liquidators were appointed to the Officeworks-backed social enterprise Circonomy.
The Brisbane-based business, which secured an investment from Wesfarmers (ASX: WES) subsidiary Officeworks in February 2022, has blamed the retail downturn for the decision to call in the liquidators late last week on 4 October 2024.
Founded as the World’s Biggest Garage Sale (WBGS) in 2013 by Yasmin Grigaliunas after a single garage sale to sell unwanted household goods, Circonomy says that its business is no longer financially viable “despite the best endeavors of the team to increase sales and reduce costs”.
Ahead of the Officeworks investment and name change to Circonomy, WBGS had grown into a multimillion-dollar social enterprise that repairs, repurposes and resells imperfect and unwanted products.
The investment by the office goods retail giant led to a national expansion for Circonomy following the new brand’s official launch in September 2022.
Liquidators James Taplin and Stefan Dopking, of BRI Ferrier, are reviewing the company's operations that could potentially lead to the business being sold.
Grigaliunas says while the company has made the “difficult decision” to appoint liquidators, she has expressed her “deepest gratitude” to everyone who has contributed her journey over the past 11 years.
"Our focus is now on supporting our employees through this process, in any way we can,” she says.
“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."
After founding WBGS in 2013, Grigaliunas leveraged the goodwill created to organise annual events and raise funds for charity.
WBGS officially became a company in 2017 with a mission to “mobilise dormant goods for good, to drive environmental sustainability and create significant social impact”.
Officeworks stepped in as a 21 per cent investor in the company in 2022 after a three-year association with WBGS – a move that led to the business being renamed Circonomy.
During those early years, WBGS would repurpose imperfect or damaged furniture from the Officeworks stock range in a bid to minimise the environmental impact of waste.
The plan was to broaden the Circonomy service offering geographically and to expand the products able to be repaired, while providing a model for other businesses to follow.
Circonomy says that while this chapter of the business is now closing, “the passion for impact and innovation - with a
focus on people, planet, and profit-for-purpose - remains strong”.
“The business was a key driver for environmental sustainability and created significant social impact, showcasing the vibrant spirit and
transformative power of Brisbane's changemakers,” the company says.
In 2022, the company estimated that it had diverted 4,000 tonnes of potential landfill since it began operations.
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