Source : Perth Now news
Australian activewear brand Stax is facing a financial crisis and has fallen into receivership.
FTI Consulting appointed Joseph Hansell and Asjadi Hone as receivers and managers of Stax and its associated entities on Wednesday.
Stax has amassed a cult following for its fashion-forward and inclusive pieces that operates online and two boutique stores in Sydney and Liverpool.
Mr Hanson said it was a well known Australian brand with strong customer support.
“Stax has done something genuinely impressive proving that premium activewear does not have to choose between performance and style,” he said.
“The business is trading as usual while the receivers undertake an urgent assessment of the company’s operations.”
The business is owned by rich listers Matilda and Don Murray who were estimated to be worth about $52m in 2024.
Stax started from a bedroom in Perth in 2015 and turned into a multimillion dollar company within 10 years, but were hit by economic pressures during the cost of living crisis.
Last year the couple were forced to take action and closed several of its bricks and mortar stores.
Murray told news.com.au they completely underestimated the tough economic environment and it affected them a lot more than they anticipated.
“The cost of living has seen Aussies reprioritise how they spend their money, with consumers having less money now to spend than ever,” he said.
“Every day we were waking up wondering, ‘how are we going to pay the rent, how are we going to keep the electricity on’.
“So while we aren’t throwing in the towel, we realised we needed to get back to our core, and fundamentally – and this is confronting to say – to save the business’ future we decided that eCommerce is the direction we want.”
FTI Consulting will provide further updates as the process continues.
