Latest news with #Alquemie
7NEWS
12 hours ago
- Business
- 7NEWS
SurfStitch placed into administration amid court action by Nike Australia over alleged debts
Australian online retailer SurfStitch has been placed into administration and is facing legal action from sportswear behemoth Nike amid claims it is owed almost $240,000. A notice lodged with the corporate regulator revealed SurfStitch, which was only recently sold by Alquemie Group, had been placed into voluntary administration earlier this month. Edwin Narayan and Domenic Calabretta of Mackay Goodwin currently have the reins, having been appointed on June 6. Nike Australia claims it is owed $237,760 for shoes and clothes SurfStitch sold on its website, and is now pursuing winding-up orders against the company, the Herald Sun reports. Lawyers say this type of action is often used by creditors to enforce payment but if the reported debt is not settled, SurfStitch could potentially be dragged into liquidation. SurfStitch's online store has been down for 'maintenance' for weeks. 'We expect to be back soon. Thanks for your patience,' a note on its website says. Customers have noticed too, asking 'when's it going to be up again?'. SurfStitch was sold by Alquemie — which features General Pants Co and Lego Certified Stores within its portfolio — to an undisclosed buyer in May, along with another fashion brand, Ginger and Smart. Sources told the Australian Financial Review that both offloaded outfits had been losing money and sales and been shrinking for some time. It is a tough new chapter for SurfStitch, which previously slipped into administration in 2017. The operation, which was reportedly valued at $500 million three years before that, managed to secure a lifeline from Alquemie. SurfStitch's difficulties are also a heavy blow for Australian retail, given the recent collapse of other major names including Jeanswest, Millers, Noni B, Rivers and Colette. Experts say reduced discretionary spending and cost of living pressures are working against retailers.
Yahoo
a day ago
- Business
- Yahoo
Iconic Aussie brand collapses as major company demands $237,760
SurfStitch has become the latest retail brand to be plunged into voluntary administration and faces the threat of liquidation. Not only that, but Nike Australia, which sold certain items to the iconic Australian brand, is chasing $237,760 in what it claimed were unpaid dues. Nike has initiated legal proceedings against SurfStitch in the Supreme Court of Victoria, and the matter is due to be presented next week, according to the Herald Sun. Edwin Narayan and Domenic Calabretta, from Mackay Goodwin, were appointed as administrators earlier this month to sort out the retailer's finances. This comes after SurfStitch fell into administration back in 2017 and was brought back from collapse a year later after being bought by Alceon Retail Bidco. Photos in Aussie store reveals grim voluntary administration reality Centrelink payment alert for 58,000 Aussies in caravans ATO $1,519 cash boost heading for Aussies in weeks The company has been around for nearly two decades and rivalled some of the other major surf and beach clothing retailers. Beach Grit even went as far as saying SurfStitch was once the 'king of the world' in its heyday, and hit a $500 million valuation in 2014. Alceon Retail Bidco has been renamed to Alquemie Retail Operations, which has General Pants Co. and LEGO Certified Stores in its SurfStitch was sold off just last month to a mystery buyer, as was another of Alquemie's fashion brands, Ginger & Smart. SurfStitch's website has been shut down for weeks and says it's currently undergoing maintenance. Nike Australia's legal action focuses on alleged debts for the sneakers and clothes it sold on SurfStitch's website. The juggernaut brand is pursuing a winding-up order, and if the courts find the claim legitimate and SurfStitch can't pay what's reportedly owed, it could be forced into liquidation. It becomes the latest retailer to struggle to keep its head above water amid a major overhaul in the Australian retail space. Several big-name retailers like Sanity, Godfreys, Rivers, Katie, Noni B, Alice McCall, Ally, and Jeanswest are just some that have been forced to close, drastically shrink, or change how they operate. Retail is experiencing one of the biggest closure rates in the country at 5.7 per cent in the 12 months to February this year. Food and beverage services are without a doubt the worst hit, with a 9.3 per cent closure rate. CreditorWatch chief economist Ivan Colhoun said many businesses were propped up during the pandemic thanks to government support and the Australian Taxation Office (ATO) stopping its pursuit of tax debts. But he told Yahoo Finance that the ATO had recommenced those activities, and businesses have faced a double whammy of soaring costs like rent, interest rates, insurance, electricity and wages. Add in the rise of cheap online marketplaces like Temu and Shein, and you have the perfect recipe for a struggling business. "With the cost of living and doing business not falling, insolvencies are expected to remain at elevated levels in coming months, with considerable uncertainty about the impact of President Trump's tariffs on global and Australian economic growth," Colhoun in retrieving data Sign in to access your portfolio Error in retrieving data
