Collapsed Australian activewear brand Stax owed over $1.7 million in outstanding orders to almost 13,000 customers before appointing liquidators earlier this month, financial records show.
The embattled company was placed into receivership in June, just four years after its founders were named on the AFR Rich List, and collapsed into liquidation as it urgently seeks a buyer.
Stax owed over $1.7 million in outstanding orders. Nicole Douglas
Brian Silvia and Michael Hird of Cascap Advisory were appointed joint liquidators for the embattled brand and its entities, including Stax Retail, Stax GPT and Stax Westfield, on July 10.
In a report to creditors lodged on Friday, the liquidators stated that 11,182 customers are still awaiting unfulfilled orders totalling $1,405,723.
A further 1745 orders worth $308,263 remain partially outstanding.
The liquidators are now determining how many of these customers will be sent orders from remaining stock.
There is $1.184 million worth of stock remaining in the company, $971,942 of which is held by third-party logistics provider, Shiparoo.
A separate container of stock worth about $100,000 has been paid for but has not yet departed the manufacturer in China, according to the report.
The team said it has also been in contact with Shopify, Stripe, Afterpay, PayPal, Klarna and Zip to investigate if chargebacks are possible.
The brand was founded by Rich-Listers Don Robertson and Matilda Murray. James Brickwood
Customers who placed orders after June 24 have been urged to contact FTI Consulting.
The brand’s dire financial health was laid bare in documents filed to the Australian Securities and Investments Commission (ASIC) last week.
Stax also owes more than $453,000 to staff before its collapse, including $63,556 in superannuation, $89,209 in annual leave and $128,683 in redundancy payments.
The brand also owes other creditors another $6.2 million, with $500,000 owed to Google, $328,845 to Meta, and $1.9 million in unpaid fees to Ningbo Mingna Garments.
Stax is in the red for a total of $23,769,514 in liabilities and debts owed to creditors, the liquidators said.
After it collapsed into receivership, the brand paused orders and closed its two stores on Sydney’s Pitt Street and Liverpool Westfield.
Customers who placed orders after June 24 have been urged to contact FTI Consulting. Nicole Douglas
Stax owners apologise to customers
Stax co-founders Don Robertson and Matilda Murray broke their silence earlier this month with an emotional statement posted to social media.
The couple described the past few weeks as “the most difficult chapter of our lives” and acknowledged that customers are “frustrated, disappointed and understandably upset” that orders have not been fulfilled.
“I want you to know that we have heard you,” the statement read.
“First and foremost, we’re truly sorry for this and for not communicating earlier.
“Stax was built over more than a decade with an incredible community and knowing that so many of our customers have been impacted is something we carry every day.”
They went on to thank their community for sticking by Stax for more than 10 years.
“Thank you as well to those who have shown us kindness during what has been the most difficult chapter of our lives,” Robertson and Murray added.