Latest news with #Exoticathletica
Daily Mail
2 days ago
- Business
- Daily Mail
Why a huge social media presence and millions in the bank doesn't mean you've made it in 2025
An e-commerce expert with 15 years experience has warned Aussies keen to start their own brands about the pitfalls that have caused so many to fail. Joshua Uebergang, 40, has been helping businesses navigate the Shopify online storefront since 2010 with his marketing agency Digital Darts. He told Daily Mail Australia the two simple rules that can help any business thrive - customer retention and keeping a handle on spending. Mr Uebergang said the recent closure of Exoticathletica, an online activewear brand founded in Noosa in 2014, was an example of companies outspending their profits without locking in a loyal customer base first. The activewear brand collapsed earlier this month owing $13million to creditors after raking in $7million in sales of an 'ultra-comfortable' crop top in 2021. It accumulated debts of over $6.2million, including $800,000 to the ATO, $6.7million to the Commonwealth Bank and $114,000 to staff. 'What you generally see on TikTok is customer numbers, high revenue numbers and media mentions but that's all meaningless compared to what really keeps the business afloat,' he said. 'Building up a brand is perfectly fine but the main thing these brands are missing is the fundamental basis of businesses: Can you acquire a customer for less than what they give you over their lifetime?' Emerging companies are too focused on social media visibility instead of investing in creating loyal customers at a cheap price, Mr Uebergang explained. He pointed to the Lifetime Value to Customer Acquisition Cost ratio (LTV/CAC) which compares a customer's lifetime value to the cost a business puts into acquiring them. This roughly translates to how much a customer is willing to spend on a brand compared to the money a business invests in attracting them in the first place. When the ratio becomes lopsided - usually when a customer spends less than three times the amount a business had spent on them - it can cause issues. 'The smaller that ratio is, the more dangerous the business becomes and it also becomes more of a long-term bet,' Mr Uebergang said. Venture-funded start-ups have more time to make up the margin compared to those which are self-funded as the latter relies on the founder's personal wealth. With venture-funded companies, investors and stakeholders are able to make up the initial difference between profits and spending. 'They can really can push because they've got more money than its founder initially had when they started it. If someone has a small business, self-funded company, they can't push that hard,' Mr Uebergang said. He warned new business owners can easily become obsessed with creating the illusion that they're living 'the dream'. 'Founders are incentivised to promote a dream, and it's a bit like general human reality with social media that we want to favour our successes and not highlight our failures, so it's no different to e-commerce brands,' he explained. 'It comes from a "make money quick" belief, which can be great, because it's good for people to try new things.' But he said some start-up owners can I greatly underestimate the debts their start-ups owe at the end of the financial year. 'It's pretty common to see people in their first year or two of business, someone who is not particular to the e-commerce space, shocked to find that after making $4million they might have to pay $2million in taxes,' Mr Uebergang said. A good rule of thumb for newcomers is to focus on making ends meet first before focusing too much on expansion or growing their customer base. Making sure the business is making enough profits and listening to customer feedback is essential to creating a lasting business, Mr Uebergang said. 'Start from day one with profit in mind, so that's having a product that you pay for and then having at least 500 per cent on top of that with what you will sell it for,' he said. 'That will help account for freight costs, general labour, customs, even some marketing to help get customers. 'Second, really master one marketing channel, focus on one and get really good at it. This can take you to $1million in annual year revenue. 'And thirdly, listen to your customers and improve on their feedback from your first sales. Build 100 customers initially and really seek to make them returning sales because they are the people that you ultimately serving.'
9 News
21-05-2025
- Business
- 9 News
Aussie activewear brand collapses after more than ten years
Your web browser is no longer supported. To improve your experience update it here An Australian activewear company has collapsed and is up for sale after more than ten years in business. Exoticathletica, a Queensland Sunshine Coast firm which sells colourful gear for women, had administrators appointed last month. SV Partners is now looking for a buyer for the "much-loved" brand, which was launched in 2014. Exoticathletica active wear. (Instagram/Exoticathletica) "In recent years, Exotic Athletica has faced significant challenges, such as changes in senior management and increased operational expenses," SV Partners said in a statement. "However, these hurdles also present opportunities for growth and innovation, paving the way for a stronger and more resilient organisation. "These factors contributed to the decision to enter voluntary administration, with the objective of identifying a buyer to continue the much-loved brand." The company is still trading. Offers on the website show 70 per cent discounts. "Founder Leilani Chandler became inspired by Brazil's fitness fashion culture, their celebration of feminine curves and bold designs that encourage women to express themselves," the company says online. Chandler once told media she had earned $7 million in sales from one model of $49.99 top. According to reports, 140,000 customers bought the bra top online between April 2020 and April 2021. The brand once had a shop on the Sunshine Coast. 9News has contacted the company for comment. finance queensland Australia national business CONTACT US Auto news: Can you use your phone in the car if it is mounted?
Yahoo
21-05-2025
- Business
- Yahoo
Popular activewear brand goes bust
A popular Australian women's activewear company has gone bust, owing $13m to creditors. Founded in 2014 by Leilani Chandler in Noosa, Exoticathletica is best known for its size-inclusive, vibrant and bright activewear and quickly became a popular choice for women across the country. However, the brand filed for voluntary administration on April 9, turning to insolvency firm SV Partners Terry van der Velde and Matthew Hudson to search for potential buyers while they comb through the financial debris. Commonwealth Bank – the secured creditor for the business – is owed $6.7m, while the brand owes unsecured creditors more than $6.2m. This includes $211,000 to manufacturers Active Apparel Group, $311,000 to Andorra Australia, $447,000 to Dongguan Huachen Sporting Goods Co and $416,000 to D and J International. The sporting brand also owes over $550,000 to e-commerce giant Shopify, $224,000 to American Express, $53,00 to PayPal , $136,00 to Invenco and $114,00 to Thread Collective Co. Customers have suffered a loss of $172,000, and the Noosa-based business owes $800,000 to the Australian Taxation Office (ATO). Employees have also been left $416,447 out of pockets, with $37,733 in unpaid superannuation. Minutes from the first meeting with creditors on April 23 said the business would continue trading to 'maximise the funds recovered from the sale of stock'. 'The administrators also intend to list the business for sale shortly,' the minutes read. 'After the business is listed for sale, the financial position of the company and the anticipated return to creditors will be more certain.' While the company's total assets are yet to be advised, the administrators estimate its stock to be valued at $2.5m. 'We have continued to trade the business to preserve its value, with the aim of maximising the return to creditor,' Mr Hudson said per Courier-Mail. 'This strategy has allowed the business to remain operational, thereby maintaining its goodwill, customer relationships and employee engagements. 'By trading the business, we have sought to facilitate a sale of the business as a going concern.' Exoticathletica was founded by Ms Chandler in 2014 and was inspired by 'Brazil's fitness fashion culture, their celebration of feminine curves and bold designs that encourage women to express themselves'. The brand is best known for its inclusive designs which aims to 'help women enhance and accentuate their bodies and unapologetically celebrate their uniqueness'. Between April 2020 and April 2021, the brand found success selling a wire-free crop top, with more than 140,000 customers purchasing the $49.99 activewear. A second meeting with creditors is expected to take place next week. Error while retrieving data Sign in to access your portfolio Error while retrieving data
7NEWS
21-05-2025
- Business
- 7NEWS
Australian activewear brand Exoticathletica goes into administration
A popular Australian activewear brand has collapsed, owing more than $100,000 to its employees. Exoticathletica was placed in administration on April 9, according to documents filed with the Australian Securities and Investments Commission (ASIC). Matthew Richardson and Terry van der Velde from SV Partners have been appointed as administrators. It's estimated the Queensland -based company owes as much as $114,000 to its staff, including $37,000 in superannuation, $73,000 in annual leave, $5800 in long service leave and $33,000 in pay in lieu of notice. The activewear brand owes $6.7 million to Commonwealth Bank and about $5.4 million to unsecured creditors. It also owes $211,000 to Active Apparel Group, an activewear manufacturer. The brand was founded by Leilani Chandler in 2014 and specialises in brightly coloured and printed athleisure clothing. According to the company's website, Chandler was inspired by Brazil's fashion culture. 'We create activewear and active lifestyle products, using innovative and elevated fabrics and fits, with bold and bright colours and prints,' the company's bio says. The business has continued to operate during the administration process. The creditors are seeking to sell the business via expressions of interest.
News.com.au
21-05-2025
- Business
- News.com.au
Popular Australian women's activewear brand goes bust, owing millions to creditors
A popular Australian women's activewear company has gone bust, owing $13m to creditors. Founded in 2014 by Leilani Chandler in Noosa, Exoticathletica is best known for its size-inclusive, vibrant and bright activewear and quickly became a popular choice for women across the country. However, the brand filed for voluntary administration on April 9, turning to insolvency firm SV Partners Terry van der Velde and Matthew Hudson to search for potential buyers while they comb through the financial debris. Commonwealth Bank – the secured creditor for the business – is owed $6.7m, while the brand owes unsecured creditors more than $6.2m. This includes $211,000 to manufacturers Active Apparel Group, $311,000 to Andorra Australia, $447,000 to Dongguan Huachen Sporting Goods Co and $416,000 to D and J International. The sporting brand also owes over $550,000 to e-commerce giant Shopify, $224,000 to American Express, $53,00 to PayPal , $136,00 to Invenco and $114,00 to Thread Collective Co. Customers have suffered a loss of $172,000, and the Noosa-based business owes $800,000 to the Australian Taxation Office (ATO). Employees have also been left $416,447 out of pockets, with $37,733 in unpaid superannuation. Minutes from the first meeting with creditors on April 23 said the business would continue trading to 'maximise the funds recovered from the sale of stock'. 'The administrators also intend to list the business for sale shortly,' the minutes read. 'After the business is listed for sale, the financial position of the company and the anticipated return to creditors will be more certain.' While the company's total assets are yet to be advised, the administrators estimate its stock to be valued at $2.5m. 'We have continued to trade the business to preserve its value, with the aim of maximising the return to creditor,' Mr Hudson said per Courier-Mail. 'This strategy has allowed the business to remain operational, thereby maintaining its goodwill, customer relationships and employee engagements. 'By trading the business, we have sought to facilitate a sale of the business as a going concern.' Exoticathletica was founded by Ms Chandler in 2014 and was inspired by 'Brazil's fitness fashion culture, their celebration of feminine curves and bold designs that encourage women to express themselves'. The brand is best known for its inclusive designs which aims to 'help women enhance and accentuate their bodies and unapologetically celebrate their uniqueness'. Between April 2020 and April 2021, the brand found success selling a wire-free crop top, with more than 140,000 customers purchasing the $49.99 activewear. A second meeting with creditors is expected to take place next week.
