Lorraine Lea Linen collapses into administration after almost 40 years [Video]

A home furnishings company famous for parties held at people’s homes has collapsed after almost 40 years.

Victorian firm Lorraine Lea Linen has appointed administrators.

It is a multi-level marketing company that saw sales reps sign up to host parties at people’s houses and earn a commission on sales.

Tupperware parties, are the most famous of the schemes, which started in the 1950’s.

The company is based in Scoresby, Victoria.

Lorraine Lea Linen’s website is currently having a half-price sale.

The company says it was “Built on family values and entrepreneurial spirit,” and was “founded in the backyard of Peter and Heather Ryan’s south-east Melbourne home in 1986.”

It says it is ”one of Australia’s largest social shopping enterprises for linen and homewares and has “over 500,000 customers”.

The administrators are Andrew Yeo and Tim Bradd of insolvency firm Pitcher Partners.

9News has contacted Pitcher Partners for comment.