Australian Fashion Label Suboo Collapses With Over $655K in Debt
The brand, previously worn by celebrities like Gigi Hadid and Kendall Jenner, cited rising operating costs and economic pressures for its downfall.
Australian fashion label Suboo has entered liquidation after nearly 15 years in business, with reported debts exceeding $655,000.
The company, Suboo Pty Ltd, officially entered liquidation on October 1 after its members voted to wind up the business, according to Australian Securities and Investments Commission records. A spokesperson for Suboo attributed the collapse to increasing operational costs, global economic pressures, and shifts in the international fashion and retail landscape.
"While there were options available to continue pushing through the current economic climate, we ultimately did not believe it was responsible or commercially viable to continue operating the business in its existing form," the spokesperson stated. "Many of these factors have been outside our control and are being felt across the industry more broadly."
The Daily Telegraph reported that Suboo Pty Ltd owed at least $655,000 to creditors. Significant debts included $105,162.50 to financing company Wayflyer, $140,232.89 to Shopify, $60,909.41 to DHL, and $58,299.49 to FedEx. An additional $239,000 comprised aged invoices, including $51,840.66 owed to garment production company Swell Ltd.
Employee Entitlements and Outstanding Invoices
Documents reportedly showed that two employees were collectively owed $170,700 in entitlements, such as annual leave and long service leave. The company also listed outstanding amounts owed to Suboo, including $108,507.36 from US fashion hire company Rent the Runway, $5,268.57 from Anthropologie and Nuuly, and $1,230 from Argentina Boutique.
Suboo's assets were listed as $1,854.16 in cash, $111,852 in stock, and $2,389 in equipment. The company spokesperson confirmed that customer orders have been fulfilled and that customer obligations are being managed to the best of the company's ability.
Suboo's website was inaccessible on Tuesday, displaying a maintenance message. The brand's social media accounts have not been updated since September 30, with comments disabled on recent posts.