Stax founders Don Robertson and Matilda Murray have issued an apology to customers and stakeholders following the activewear company's collapse and subsequent sale to new owners. The brand, which entered receivership in June and liquidation in July, owes an estimated $23.7 million to creditors.
In a statement posted to Instagram, Robertson and Murray acknowledged the significant financial impact on customers, many of whom are owed money for unfulfilled orders. "I am deeply sorry to everyone adversely impacted," Robertson stated, admitting that business decisions made during his leadership did not always yield positive outcomes. He added that they would "never have knowingly accepted those orders if we believed the business would not remain in a position to fulfill them."
Robertson indicated a proposal has been put forward to support the fulfillment of customer orders placed before the company entered receivership. While the outcome is uncertain and no promises can be made, the founders expressed a desire to support affected customers. "It was important to us to do everything we reasonably could to support those customers," he wrote.
The liquidation report reveals that approximately 13,000 customers are collectively owed around $1.7 million for unfulfilled or partially completed orders. This includes over 11,000 outstanding orders valued at more than $1.4 million and an additional 1,745 partially fulfilled orders worth over $308,000.
Beyond customer debts, the company's financial distress extends to employees, who are owed more than $450,000 in unpaid wages, leave entitlements, redundancy payments, and superannuation. The National Australia Bank is listed as the largest secured creditor, owed over $7.3 million, followed by financier Bizcap, which is owed nearly $1.9 million.
Stax, founded in Perth in 2015, grew into a significant player in the Australian activewear market, reaching an annual turnover of over $30 million at its peak and employing approximately 140 people. The brand was known for its inclusive sizing and celebrity endorsements. Liquidators are currently assessing whether remaining inventory can be utilized to address outstanding customer orders.