Hiro Brands: Major Australian cleaning products company goes bankrupt

A major brand manufacturer behind some of Australia's most widely used cleaning products has gone bankrupt, with around 120 employees now unemployed.

Hiro Brands owns a range of cleaning and cosmetics brands such as Orange Power, Organic Choice cleaning products and Aware Sensitive washing powder.

Many of the brands are sold in major supermarkets such as Coles and Woolworths.

The company went into voluntary administration on January 2, with KPMG's David Hardy, James Dampney and James Stewart appointed as administrators.

Mr Hardy said in a statement that administrators had “ceased operations following the completion of an urgent review of the financial position”.

“Unfortunately, following our appointment, it became clear that the company's financial position did not permit the continuation of trading activities,” he said.

“As a result, we have terminated most employees' employment contracts.”

Mr Hardy said that 'employees have been advised that the Group cannot continue their employment'.

Sister companies Chimera Laboratories Pty Ltd, Doward International Pty Ltd, Greencare Developments Pty Ltd, Scental Pacific Pty Ltd, The Heat Group Pty Ltd, Aware Environmental Pty Ltd and Aware Environmental Products Pty Ltd have also entered administration.

Up to 120 people who previously worked at the companies have been laid off.

Mr Hardy said they are “urgently” looking for a buyer for the Hiro Group's assets and intellectual property. A creditors meeting will take place on January 11.

Administrators work together with stakeholders, employees, suppliers and customers.

The group's debts have yet to be calculated, but due to the size of the company the amount is expected to be in the millions.

The Australian Financial Review valued Hiro Group at $50 million in 2020, while the company was previously on track to generate $70 million in revenue by 2024.