Customers have been left without parcels after struggling homewares retailer Ishka had its Australia Post account frozen.
The family-owned chain, which has been in business for almost half a century, says Australia Post has frozen its postal account.
It left more than 2000 parcels for online customers undelivered after administrators at Cor Cordis took charge of the retailer last Thursday.
Ishka owner and chief executive Toby Darvall described the latest predicament as 'terrible'.
Scroll down for video
More than 2000 parcels for online customers undelivered by Australia Post, according to Ishka owner and chief executive Toby Darvall (pictured)
'Now all of those orders are just sitting there because Australia Post won't pick them up,' Mr Darvall said in a statement.
'It means thousands of customers won't get their parcels and we will probably have to immediately lay off 60 staff.'
'Australia Post really has a monopoly in the home delivery of online parcels and we have no other option but to send through Australia Post.
To compensate affected customers, Ishka has offered to refund the Australia Post fee and give out a free $10 voucher if they pick up their parcels in store.
'All we want to do is to continue to trade with Australia Post in exactly the same way we have for years. We even offered to pay for future services upfront but they won't accept it. We don't want any extra favours. We're just fighting to stay alive and preserve 500 jobs,' Mr Darvall said.
Ishka has offered to refund the Australia Post fee for affected customers whose parcels haven't been delivered, along with a free $10 voucher if they pick up their parcels in store (pictured)
Australia Post has since assured customers that the matter is being addressed and will be rectified.
'We have been working closely with the appointed administrator Cor Cordis on this matter, with the aim of returning to a normal credit relationship as soon as possible,' a spokeswoman told Daily Mail Australia.
'In the meantime, Ishka can continue to use Australia Post services on a pay-as-you-go arrangement.'
Australia Post also assured Ishka can still distribute parcels on a pay as they go system at any Australia Post outlet, or provide payment upfront for services.
Established in 1971 as a craft studio in Melbourne, Ishka eventually grew to 60 stores around Australia.
Despite launching a 'everything must go' sale, Mr Darvall vowed to do everything he can to keep the business open and save the jobs of staff.
'After some very tough months, that may now come to an end – I am so sorry to have to let you know that we have made the difficult decision to put our business into voluntary administration,' he announced in a heartfelt open letter to customers last week.
'So now we will try absolutely everything we can to save it and stay in business and keep our beautiful stores open! We are working day and night to save Ishka – but we need your help too.'
It began almost half a century ago as a craft studio (pictured) in Melbourne suburb Glen Iris
The retailer has suffered an estimated $5 million in losses in recent months.
'We have explored every option but it has been a devastating summer,' Mr Darvall told Seven News last week.
'We have traded through three recessions. This is a 50-year-old business that has been very resilient.'