Australian online retailer SurfStitch has been placed into administration and is facing legal action from sportswear giant Nike Australia over alleged debts.
SurfStitch, which was once valued at $500 million, has been accused of owing Nike Australia almost $240,000 for shoes and clothes sold on its website.
Voluntary Administration and Court Action
A notice lodged with the corporate regulator revealed that SurfStitch was placed into voluntary administration earlier this month, with Edwin Narayan and Domenic Calabretta of Mackay Goodwin currently in charge.
Nike Australia is pursuing winding-up orders against SurfStitch, which could potentially lead to liquidation if the reported debt is not settled.
Website Down for Weeks
SurfStitch’s online store has been down for “maintenance” for weeks, with a note on its website stating, “We expect to be back soon. Thanks for your patience.”
Customers have taken to social media to ask when the website will be back up again.
Tough Times for Australian Retail
SurfStitch’s difficulties are a heavy blow for Australian retail, which has already seen the collapse of major names including Jeanswest, Millers, Noni B, Rivers, and Colette.
Experts say reduced discretionary spending and cost of living pressures are working against retailers.
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