Cult Aussie activewear brand Stax falls into receivership amid financial pressures
Australian sportswear brand Stax is facing a financial crisis and has fallen into receivership.
FTI Consulting on Wednesday appointed Joseph Hansell and Asjadi Hone as receivers and administrators of Stax and related entities.
Stax has amassed a cult following with its fashion-forward and inclusive pieces operating online and two boutique stores in Sydney and Liverpool.
Mr Hanson said it was a well-known Australian brand with strong customer support.
“Stax has done something truly impressive that proves that premium sportswear doesn’t have to choose between performance and style,” he said.
“It’s business as usual while buyers conduct an urgent assessment of the company’s operations.”
The business is owned by wealthy listers Matilda and Don Murray, who are estimated to be worth approximately $52 million in 2024.
Stax started from a bedroom in Perth in 2015 and grew into a multimillion-dollar company within 10 years, but was hit by economic pressures during the cost of living crisis.
Last year, the couple was forced to take action and closed many of their brick-and-mortar stores.
Murray told news.com.au they completely underestimated the difficult economic environment and it was affecting them much more than they realized.
“The high cost of living has led Australians to reprioritise how they spend their money – consumers now have less money to spend than ever before,” he said.
“We woke up every day wondering, ‘How are we going to pay the rent, how are we going to keep the electricity on?’
“So while we weren’t throwing in the towel, we realized we needed to go back to our core, and basically – although it’s hard to say – we decided that e-commerce was the direction we wanted to save the future of business.”
FTI Consulting will provide further updates as the process continues.
