Secrets International Pty Ltd, the parent company of jewellery retailer Secrets Shhh, has entered voluntary administration, with FTI Consulting appointed as administrators on 18 December 2024.
John Park, Kate Warwick and Kelly-Anne Trenfield have been named as joint and several administrators.
The move affects Secrets Shhh’s national operations, including its network of 23 boutique stores across Australia and its online retail platform, and comes during the peak Christmas trading period.
Operational Impact and Customer Orders
Following their appointment, the administrators stated they would begin an urgent assessment of the company’s operations and have initiated a sales and/or recapitalisation process. In the meantime, trading will continue where stock is available.
Orders placed on or after 18 December will be processed and shipped as usual, subject to stock availability. However, there is no assurance that orders made prior to the appointment will be fulfilled.
Gift cards and store credits can still be redeemed, provided the total transaction value is equal to or greater than the amount of the gift card or credit.
Creditor Proceedings and Group Structure
The first meeting of creditors is scheduled for 19 December. The administration includes multiple entities under the Secrets International group, such as Secrets Wholesale, Secrets Shhh, Secrets Shhh Leasing, Secrets Shhh Franchising, Secrets Shhh Retail Leasing, Secrets Online, Simudia and Secrets Leasing.
Administrators have stated they are in the process of communicating with creditors, suppliers and employees with information regarding ongoing trading and the administration process.
Business Model and Market Position
The business sells lab-grown and simulated diamond alternatives, which it describes as sustainable and ethically sourced. Its product offering includes rings, bracelets and earrings. The stones are supplied with a guarantee covering visual properties such as internal fire and brilliance.
The business operates in a segment of the market that focuses on lab-created and simulated stones as alternatives to mined diamonds. This area has seen increased activity in recent years as some consumers show greater interest in non-traditional and lower-impact materials.
Implications for the Jewellery Industry
The administration of Secrets Shhh highlights ongoing challenges for jewellery retailers in the mid-tier price bracket, particularly those focused on alternative materials. The outcome of the sale or recapitalisation process will be of note to those operating in this segment, particularly given the timing within the peak Christmas trading period.
