Don Robertson and Matilda Murray, the founders of collapsed Australian activewear brand Stax, have apologised to "everyone adversely impacted" by the company's collapse.
The couple, who founded the Perth-based label in 2015, posted a lengthy statement to Instagram late Monday evening, offering hope to customers who lost money while admitting they made mistakes as business owners.
Robertson said he had written many drafts of the statement and tried to record a video but could not get the words out. He said the business entered receivership and that, through the process, the brand and business have now been sold to new owners.
He called it one of the most painful and confronting experiences of their lives, saying he and Murray built the brand from the ground up, gave it everything they had, and genuinely believed they would be part of its future.
Robertson said he and Murray were still processing the shock and grief of losing something that meant so much to them for more than 10 years, but that it was not only about their own pain.
Founder admits mistakes
Robertson acknowledged that, as founder and leader of the business, he made decisions that shaped its direction, and that some worked while others ultimately did not, though he said he always tried his best.
He said he was deeply sorry to everyone adversely impacted, addressing customers who spent money on items that never arrived. He said they would never have knowingly accepted those orders if they believed the business would not remain able to fulfil them, but understood that their intentions did not erase the disappointment or frustration people experienced.
Proposal for customer orders
Robertson said the pair had put forward a proposal to support the fulfilment of customer orders placed before the receivers were appointed. He said the outcome was not within their control and they could not make any promises, but that it was important to them to do everything they reasonably could to support those customers.
He ended the post by saying there were things he wished he had done differently and lessons he would carry with him for the rest of his life, personally and professionally. He said that while it was incredibly painful to say goodbye, they genuinely wished the new owners and the brand every success. He thanked the team, customers, suppliers and everyone who believed in them, adding that he knew one post could not repair everything or restore trust overnight.
$23.7 million owed to creditors
New liquidator documents have revealed the scale of Stax's debts. The latest report from joint liquidators Brian Silvia and Michael Hird of Cascap Advisory shows the retailer owes $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.
At its peak, the business recorded annual turnover of more than $30 million. 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. Liquidators warned Bizcap is unlikely to recover its debt because NAB's claim takes priority.
Staff and customers owed money
The documents show employees are owed more than $450,000 in total, including unpaid wages, annual leave, redundancy entitlements and superannuation. One staff member is reportedly owed more than $78,000.
Almost 13,000 shoppers are collectively owed around $1.7 million for unfulfilled or 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.
About $1.18 million worth of stock remains, though 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.
Rise of the brand
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. At its peak, the business employed around 140 people.
