Activewear Brand Stax Collapses With $23.7 Million Debt
Liquidator documents reveal the Australian company owes over $450,000 in unpaid staff entitlements and $1.7 million to nearly 13,000 customers.
Collapsed Australian activewear brand Stax owes creditors $23.7 million, according to new documents from joint liquidators Brian Silvia and Michael Hird of Cascap Advisory. The company was placed into receivership in June and liquidation in July.
At its peak, Stax recorded annual turnover exceeding $30 million and employed approximately 140 people. National Australia Bank is the largest secured creditor, owed more than $7.3 million, while financier Bizcap is owed nearly $1.9 million. Liquidators have cautioned that Bizcap is unlikely to recover its debt due to NAB's priority claim.
Employees are owed more than $450,000 in unpaid wages, annual leave, redundancy entitlements, and superannuation, with one staff member reportedly owed over $78,000. Almost 13,000 customers are collectively owed around $1.7 million for unfulfilled or partially completed orders. There are 11,182 outstanding orders valued at over $1.4 million and an additional 1,745 partially fulfilled orders worth more than $308,000.
The brand, founded by Don Robertson and Matilda Murray in 2015, grew from a Perth bedroom into one of Australia's significant activewear businesses, known for inclusive sizing and celebrity endorsements. It operated multiple retail stores, including a flagship location in Sydney.
Liquidators are currently assessing whether remaining inventory can be used to fulfill outstanding customer orders. Approximately $1.18 million worth of stock remains, with nearly $972,000 held by third-party logistics provider Shiparoo, which is owed about $400,000 and has placed a lien on the goods. Another shipment valued around $100,000 is with a Chinese manufacturer.
Robertson and Murray recently issued an apology to customers, acknowledging their frustration and disappointment regarding unfulfilled orders. They advised customers who paid by credit card, debit card, or PayPal to contact their payment providers to inquire about potential buyer protection or chargeback options. The founders stated that decisions regarding outstanding orders and business administration were being managed through the receivership process.