A major Australian fashion label worn by global stars, Suboo, has collapsed with hundreds of thousands of dollars of debt amid challenging market conditions.
Womenswear label Suboo fell into liquidation on Thursday as rising operating costs and sweeping economic pressures crippled its business model.
A report detailing its massive debts showed Suboo collapsed owing about $655,000 to creditors.
Financial technology company Wayflyer is owed just over $105,000 while online retail platform Shopify is out of pocket more than $140,000.
Clothing and garment companies Swell Ltd and Dongguan P&J Clothing Co Ltd are owed $51,840 and $18,253 respectively.
Meanwhile, logistics company DHL is owed almost $61,000, FedEx is owed just over $58,000 and two employees are owed $170,700 in entitlements.
A company spokesperson said the collapse was due to major factors outside of its control that were being felt across the fashion industry.
“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 said.
Suboo was stocked in leading stores across New York, including Bloomingdale’s, Nordstrom and Saks Fifth Avenue, at the peak of its operations.
The label was also worn by leading influencers and celebrities, such as Gigi Hadid and Kendall Jenner, and was available in more than 300 premium boutiques across 17 nations.
Suboo’s website now states it is undergoing maintenance and “will be back online soon”.
It has failed to post anything on social media since September 30 and closed comments on its posts.
The company entered liquidation after a meeting of the company’s members on Thursday.
Suboo said it was unclear what the future of the company would look like.
“In relation to the future of Suboo, we are not in a position to provide any further information at this point in time,” a company statement said.
“If there are future developments regarding the brand, these will be communicated when appropriate.”
Suboo also claims it is owed more than $108,000 by US fashion hire company Rent the Runway, along with $1230 by Victorian company Argentina Boutique and $5268 by US outlets Anthropologie and Nuuly.
Read related topics:Australian business