Canberra's beloved retail shop supporting local artists and makers, POP Canberra, has entered voluntary administration but it's business as usual at the Lonsdale Street store.
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The shop's future is uncertain while the administration process is underway, however owner Gabe Trew is optimistic POP Canberra can emerge "better than ever".
Following guidance from legal and business advisors, Mr Trew said he called in administrators to help restructure the business and manage debts that were accrued early on in the business.
"We've gotten to a point now where we'd like to work with professionals on these problems and we want to deal with them so that we can come back better than ever," he said.
![Gabe Trew is optimistic his business will emerge stronger from voluntary administration. Picture by Keegan Carroll Gabe Trew is optimistic his business will emerge stronger from voluntary administration. Picture by Keegan Carroll](/images/transform/v1/crop/frm/146508744/eb008dda-9b38-4c35-a741-42dac8435948.jpg/r0_256_5000_3078_w1200_h678_fmax.jpg)
Fabian Micheletto and Michael Carrafa of advisory firm SV Partners were appointed as administrators for the business on April 5.
Documents lodged with ASIC show POP Canberra owes about $1 million to 13 creditors.
The administrators will explore a range of options for the business, including a deed of company arrangement, an agreement between the business director and creditors setting out how the company's debts are dealt with. Other options may include selling the business or, as a last resort, liquidation.
Mr Micheletto said his priority was to preserve the business' value.
"The administration process is designed to give the business the best possible opportunity of continuing as a going concern," he said.
Shoppers were still browsing the shelves at POP Canberra on Wednesday afternoon. Mr Trew said the business would continue trading as usual while the administration process is underway.
![POP Canberra owner Gabe Trew hopes the business can emerge stronger than ever. Picture by Keegan Carroll POP Canberra owner Gabe Trew hopes the business can emerge stronger than ever. Picture by Keegan Carroll](/images/transform/v1/crop/frm/146508744/49344de5-d78a-43f9-bcf1-a276a544af0d.jpg/r0_256_5000_3078_w1200_h678_fmax.jpg)
"The doors are open, we are trading completely as normal," he said. "No staff are laid off. We have all the great products we usually do."
ASIC data shows insolvencies are on the rise, with 5147 companies entering external administration during the current financial year to mid-March.
Mr Trew hopes calling in administrators can be a positive step forward for the business.
"Being able to emerge from a voluntary administration is something that can be really positive for a business," he said.
"We can help show people that hard times come and you can tackle things and you can actually emerge from these situations with your head held high, still a part of the local economy."
POP Canberra began as a pop-up store in 2018 and after some false starts during COVID-19, opened a permanent location on Lonsdale Street in 2020.
The Braddon shop then struggled through Canberra's lockdown in late-2021.
In February 2022, Mr Trew told The Canberra Times Lonsdale Street was in "real trouble" as small businesses dealt with a steep decline in foot traffic on the once-booming strip of retail and hospitality.
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Trading has since recovered, he said, and shoppers were returning to the area.
"We had incredible Christmas trade and we're seeing more customers from out of town," he said.
"We're really starting to see the street get back to its real vibrant, happy feeling."
POP Canberra's first meeting of creditors has been scheduled for April 19.
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