A Commitment to Rectify and Rebuild Trust
Founders Speak Out: Apology and Acknowledgment of Missteps
Don Robertson and Matilda Murray, the visionary co-founders of Stax, have formally extended their apologies to all individuals adversely affected by the recent financial demise of their multi-million dollar activewear enterprise. In a candid statement released on Instagram, the duo, who established the brand in Perth in 2015, expressed deep regret and acknowledged their accountability for the operational decisions that contributed to the company's collapse.
The Unveiling of Financial Distress: A Painful Revelation
Robertson conveyed the profound personal and professional anguish experienced by both founders, emphasizing the emotional toll of losing a venture they meticulously nurtured for over a decade. He admitted that while some strategic choices proved successful, others ultimately faltered, leading to the current predicament. The founders underscored their commitment to learning from these experiences.
Reassurance for Customers: A Glimmer of Hope Amidst Uncertainty
Addressing the pressing concerns of customers who placed orders for products that were never delivered, Robertson clarified that these transactions would not have been processed if the company had foreseen its inability to fulfill them. He extended a sincere apology for the disappointment and frustration caused, affirming the value they place on customer trust. A proposal has been submitted to facilitate the fulfillment of all outstanding customer orders placed prior to the appointment of receivers, although the final outcome remains beyond their immediate control.
Overwhelming Financial Burdens: The Staggering Debt Profile
Newly released documents from the liquidators, Brian Silvia and Michael Hird of Cascap Advisory, have shed light on the immense financial liabilities of the former activewear giant. The report indicates a colossal debt of $23.7 million owed to various creditors. This includes a substantial sum of over $450,000 in unpaid staff entitlements, highlighting the severe repercussions for employees.
Creditors and Unfulfilled Orders: The Ripple Effect of Collapse
The National Australia Bank stands as the largest secured creditor, with over $7.3 million owed, followed by financier Bizcap, which is owed nearly $1.9 million but is unlikely to recover its funds due to NAB's priority claim. The collapse has also left approximately 13,000 customers in limbo, collectively owed around $1.7 million for unfulfilled or partially completed orders. This figure includes over 11,000 outstanding orders totaling more than $1.4 million and 1,745 partially fulfilled orders valued at over $308,000.
Inventory Status and Future Prospects: Awaiting Resolution
The company currently possesses about $1.18 million worth of stock, with a significant portion held by third-party logistics provider Shiparoo, which has asserted a lien over the goods due to an outstanding debt of approximately $400,000. An additional shipment, valued at around $100,000, remains with a Chinese manufacturer. The liquidators anticipate that the coming weeks will be crucial in determining whether any of the remaining inventory can be utilized to satisfy existing customer orders.
From Soaring Success to Liquidation: A Decade in Review
Stax, founded in 2015, rapidly ascended to prominence in the Australian activewear market, distinguished by its inclusive sizing options and a strong celebrity endorsement presence. At its zenith, the brand boasted an annual turnover exceeding $30 million and operated numerous retail outlets, including a flagship store in Westfield Sydney. Employing approximately 140 individuals during its peak, the company's journey underscores the volatile nature of the retail industry.
