Australian Activewear Brand Stax Saved From Collapse by New Owners

The Australian activewear brand Stax, once favored by celebrities, is set to relaunch after being acquired by a private investor group led by entrepreneurs Justin Truong and Sandy Li-Truong. The brand had entered receivership in June, with debts totaling $23.7 million, including $450,000 in unpaid staff entitlements and $7.3 million owed to the National Australia Bank.

Thousands of customers were also affected, with unfulfilled and partially complete orders amounting to $1.7 million. The company was officially wound up and entered voluntary administration shortly after its financial difficulties became public.

The new owners, who also founded the e-commerce marketplace Pushas, have purchased Stax's trademarks, design intellectual property, and digital assets for an undisclosed sum. Online sales are currently unavailable, but Stax's social media channels have indicated a relaunch is planned for the coming months.

Truong and Li-Truong have stated they are not legally responsible for unfulfilled orders placed under the previous ownership, which was led by co-founders Don Robertson and Matilda Murray. This decision has raised concerns among customers regarding the fulfillment of their outstanding orders.

"Stax remains one of Australia's most recognised activewear brands, with a loyal customer community and strong long-term potential," Li-Truong said. "Don and Matilda built something special: a fashion-forward activewear brand centred around the belief that every body is a Stax body. Our responsibility now is to earn the trust of the Stax community. That starts with bringing in a team that can rebuild the business on strong foundations, invest in quality and deliver the experience customers expect from the brand."

Justin Truong has been appointed as the new chairperson, and the group is actively seeking a new chief executive to manage daily operations. He expressed a desire to give the "iconic Australian brand another chance" rather than see it dismantled by a larger corporation. "We have enormous respect for the community the founders built over the past decade," Truong stated. "Although legal responsibility for orders placed with the previous entity did not transfer to the new ownership, we recognise the impact on affected customers and are actively exploring meaningful ways to support them as the brand relaunches."

There is a possibility that former Stax employees may be rehired, with Truong noting that continuity would be beneficial. The sale was facilitated by FTI Consulting receiver Asjadi Hone, who described the outcome as "a great outcome for the brand to restore trust with its large and loyal customer community across Australia."

The acquisition will operate as a distinct entity from Pushas, the sneaker resale marketplace founded by the Truongs in 2017, which earned them a spot on the Forbes 30 Under-30 List within five years. Stax, founded in 2015, saw its valuation peak at $52 million, placing its former co-founders on the Australian Financial Review's 2022 Young Rich List.

The brand previously had eight stores but closed all but two last year amid rising interest rates. Robertson and Murray issued a public apology last month to customers affected by the unfulfilled orders, acknowledging the frustration and disappointment caused.