High street sports chain with 31 stores plunges into administration | World | News

A leading high street sports retailer has gone into voluntary administration.

Stateside Sports, one of Australia’s largest stockists of NBA jerseys, NFL merchandise and coaches apparel, currently has 31 stores under review.

Voluntary administration is a temporary restructuring process designed to save a struggling business or achieve a better outcome for creditors than an immediate closure would provide.

This is different from liquidation, which is the legal procedure by which a company is wound up. This usually involves selling the firm’s assets to raise funds, which are then used to pay off outstanding debts to creditors and shareholders.

Reports suggest the sports retailer will continue trading, but the future of its physical stores and online operations remains uncertain.

Antony Resnick and Henry Kwok, of consultancy DVT Mcleods, were appointed as voluntary administrators on 22 May.

Stateside Sports was founded in 2017, 9News reported. The business also carries Australian sporting gear, including retro NRL jerseys, as well as globally recognized brands such as Nike, Jordan, New Era and Mitchell and Ness.

“While we will immediately focus on changes to its operations and retail footprint, for now it will be business as usual and products will continue to be sold in-store and online,” said Resnick, the volunteer manager. The chain has been affected by declining discretionary spending, inflationary cost pressures and competition from international retailers, he said.

“Australian retail has never been a game for the faint of heart, but current trading conditions are difficult even for Stateside Sports, which operates in a niche, youth-focused, brand-related market,” Resnick said.