Collapsed Aussie activewear brand Stax owing $1.7m to nearly 13,000 shoppers as documents reveal full scale of debt
An Australian sportswear retailer owes $1.7 million to 13,000 Australians, new documents have revealed.
Sportswear brand Stax collapsed in June and went into voluntary administration on July 10, with Cascap Advisory’s Brian Silvia and Michael Hird as joint liquidators.
The new documents revealed that Stax owed $1,713,986 to 12,927 customers, 11,182 of whom had unfulfilled orders totaling $1,405,723 and 1,745 partially unfulfilled orders worth $308,263.
Liquidators will now determine how many customers will receive their orders from existing stock.
“The next two weeks will clarify the possibility of a positive outcome in this matter,” the liquidator’s report said.
Approximately $1.184 million worth of inventory remains at Stax, with $971,942 held by third-party logistics company Shiparoo.
Shiparoo now owes up to $400,000 in fees and has filed a lien on the shares until its demand is met.
A separate stock container, approximately $100,000, was paid for but did not leave the Chinese manufacturer.
Previous documents had revealed staff owed more than $450,000, including $389,524 in employee entitlements and $63,557 in pension benefits, with one employee owed as much as $78,562.
NAB is the company’s largest creditor with a total debt of $7,337,467, followed by Bizcap with a debt of $1,882,681.
“As a junior general securities stock, Bizcap’s recovery depends on the remaining surplus after NAB’s debt is fully repaid, which is unlikely,” the report said.
Hitch Advisory, which is acting as attorney on behalf of Stax, is the third-largest creditor and is owed $14,166 in attorney fees.
Founded in 2015 by Don Robertson and Matilda Murray, Stax had a turnover of $30 million, employed 140 staff and operated 14 brick-and-mortar stores at its peak, including a flagship in Westfield Sydney.
Robertson is the company’s sole director and holds 90 percent of the company’s shares; Murray holds the remaining 10 percent.
In a statement on social media in early July, the founders said they knew customers were “disappointed, disappointed and understandably upset” that orders were not fulfilled.
“I want you to know that we hear you,” the statement said.
“First of all, we are truly sorry for this and for not being able to communicate earlier.
“Stax was built over a decade with an incredible community, and knowing that so many of our customers have been impacted is something we carry every day.”
They said they know customers who haven’t received their orders are disappointed and are encouraged to contact their banks “to inquire about available options.”
“I know this does not change the frustration or disappointment many of you feel,” the statement said.
“If you placed an order and haven’t received it yet, we totally understand why you’re upset.”
