Petra Hair Care has collapsed into liquidation after 52 years in business.
The chain started business as a hairdressing salon in Melbourne's Elizabeth Street in July 1966 where it became apparent there was a market for selling hair care to the home.
Soon the salon was moved upstairs and the ground floor was selling only hair care.Petra Hair Care grew to five stores located in major shopping centres in Melbourne with qualified hairdressers selling products.
But the company went into liquidation this week with Con Kokkinos of Worrells Solvency & Forensic Accountants appointed as liquidator.
Kokkinos says though it is still early in the liquidation process it appears competition in the retail sector and excessive costs led to Petra Hair Care's demise.
Petra Hair Care's five stores were shut last week.
"The stores were closed before my appointment and I have chosen not to reopen them. The landlord is moving on a few of them and there are no resources and funds to reopen the stores," Kokkinos says.
Around 20 staff were let go when the stores were closed and some leave entitlements for staff may still be owing.
Kokkinos says he is still assessing what Petra Hair Care owes but it is likely to be between $1 million and $2 million with the major creditors related parties.
"It appears they put in a lot of money themselves to try to prop it up for a bit," Kokkinos says.