Collapsed homewares chain ISHKA claims it’s been dealt “another cruel blow” after the delivery of thousands of online parcels was halted.

Last week, the 50-year-old chain went into voluntary administration after a “catastrophic” summer of trade, and announced a total clearance sale.

Watch the video above

But on Thursday, the store issued a media release saying Australia Post had frozen its postal account, stopping the delivery of more than 2000 online parcels.

The homewares store is best known for hand-made crafts and gifts. Credit: ISHKA

“It’s terrible, now all of those orders are just sitting there because Australia Post won’t pick them up,” owner Toby Darvall said.

“It means thousands of customers won’t get their parcels and we will probably have to immediately lay off 60 staff.”

More on 7NEWS.com.au

Darvall said ISHKA is now offering to refund customers the Australia Post fee and give them an extra $10 voucher if they come and pick up parcels in store.

Australia Post response

In a statement to 7NEWS.com.au, an Australia Post Spokesperson said it aimed to return the “normal credit relationship as soon as possible”.

“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,” the spokesperson said.

“In the meantime, Ishka can continue to use Australia Post services on a pay-as-you-go arrangement.”

Unusually challenging

ISHKA, which sells hand-made crafts, homewares, gifts, clothing, furniture and jewellery from throughout the world, first started at Glen Iris in Melbourne’s south-east.

Australia’s unusually challenging summer period, paired with more than $3 million worth of Christmas stock delayed amid quarantines, crippled the business.

ISHKA has 60 stores nationwide, including 15 country stores.