Australian activewear cult brand Stax has been placed into receivership by the National Australia Bank, with FTI Consulting appointed as managers to reassess operations and recover amounts owed to creditors.
Founded in Perth by Don Robertson and his wife Matilda in 2015, Stax built a following through collaborations with local influencers and the fitness community as well as celebrity endorsements, including Jennifer Lopez, Lizzo, Hailey Bieber, Ashley Graham, Rita Ora, and Addison Rae.
In 2022, Stax reportedly had annual sales of Australian $30 million (US$21 mm) and a valuation of A$52 million (US$36 mm). The brand operated 12 stores at its peak.
The collapse into receivership was attributed to economic pressures, including elevated inflation, athleisure competition and challenges covering high-priced rent for its stores. The company closed several stores over the last few years and now operates two in Sydney and Liverpool while prioritizing online selling.
Don Robertson told news.com.au, “The cost of living has seen Aussies reprioritize how they spend their money, with consumers having less money now to spend than ever. 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 realized 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.”
“Stax is a well-known Australian brand with strong customer support,” receiver and FTI Consulting manager Joseph Hansell said in a statement. “Stax has done something genuinely impressive, proving that premium activewear does not have to choose between performance and style..The business is trading as usual while the receivers undertake an urgent assessment of the company’s operations.”
Image courtesy Stax
