The staggering debt owed by collapsed Aussie activewear brand Stax has been revealed by new liquidator documents.
The latest report from joint liquidators Brian Silvia and Michael Hird of Cascap Advisory shows the once high-flying retailer owes a staggering $23.7 million to creditors, including more than $450,000 in unpaid staff entitlements.
Stax was placed into receivership in June before entering liquidation in July.
The business, founded by Don Robertson and Matilda Murray, had grown into one of Australia’s biggest activewear success stories, recording annual turnover of more than $30 million at its peak.
According to the report, National Australia Bank is the company’s largest secured creditor, owed more than $7.3 million, while financier Bizcap is owed almost $1.9 million.
However, liquidators warned Bizcap is unlikely to recover its debt because NAB’s claim takes priority.
The staggering debt owed by collapsed Aussie activewear brand Stax has been revealed by new liquidator documents
The documents also reveal employees are owed more than $450,000, including unpaid wages, annual leave, redundancy entitlements and superannuation.
One staff member is reportedly owed more than $78,000.
Customers have also been caught up in the collapse, with almost 13,000 shoppers collectively owed around $1.7 million for unfulfilled or only partially completed orders.
Liquidators say there are 11,182 outstanding orders worth more than $1.4 million, along with a further 1,745 partially fulfilled orders valued at more than $308,000.
There is about $1.18 million worth of stock remaining, although almost $972,000 of it is being held by third-party logistics provider Shiparoo, which is itself owed about $400,000 and has placed a lien over the goods until its debt is paid.
Another shipment worth around $100,000 remains with a Chinese manufacturer.
Liquidators said the coming weeks will determine whether any of the remaining inventory can be used to fulfil outstanding customer orders.
Stax was founded in 2015 and quickly built a loyal following through its inclusive sizing and celebrity endorsements, eventually operating multiple retail stores including a flagship location at Westfield Sydney.
The latest report from joint liquidators Brian Silvia and Michael Hird of Cascap Advisory shows the once high-flying retailer owes a staggering $23.7 million to creditors, including more than $450,000 in unpaid staff entitlements
At its peak, the business employed around 140 people.
Earlier this month, Robertson and Murray broke their silence following the collapse, apologising to customers who had been left out of pocket.
‘Many of you are frustrated, disappointed and understandably upset that your orders remain unfulfilled,’ they said in a joint Instagram post.
‘I want you to know that we have heard you. 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.’
The pair went on to broach the topic of unsent orders.
‘I know that doesn’t change the frustration or disappointment so many of you are feeling,’ the statement read.
‘If you placed an order and haven’t received it, we completely understand why you’re upset.’
Customers have also been caught up in the collapse, with almost 13,000 shoppers collectively owed around $1.7 million for unfulfilled or only partially completed orders
Earlier this month, Don Robertson and Matilda Murray broke their silence following the collapse, apologising to customers who had been left out of pocket. (Both pictured)
The statement suggested that customers who wished to do so could seek refunds through their financial institutions.
‘Following the appointment of Receivers and Managers, control of the company, its operations and its assets transferred from us to the receivers. Decisions regarding outstanding orders and the administration of the business are now being managed through that process,’ it read.
‘If you paid by credit card, debit card or PayPal and have not received your order, you may also wish to contact your payment provider to ask about the options available to you, including any buyer protection or chargeback processes that may apply.’
They concluded: ‘Thank you as well to those who have shown us kindness during what has been the most difficult chapter of our lives.’
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