The Australian arm of global footwear brand Nike has taken collapsed retailer Surfstitch to the Supreme Court of Victoria over unpaid debts.
Court documents obtained by Ragtrader claim that Surfstitch owes Nike Australia Pty Ltd $237,760.38. The sneaker brand is also calling for the Surfstitch business to be wound up.
A court date has been set next week to decide the matter.
Surfstitch fell into administration on June 6, with the first creditors’ meeting held on June 19. The court documents from Nike Australia were initially filed in May, around the same time when Surfstitch’s parent company, Alquemie Group, sold the assets of the surfing retail brand to a mystery buyer, along with its other key retail subsidiary, Ginger & Smart.
Alquemie Group had confirmed the news with Ragtrader, saying the sale of these smaller portfolio businesses is a major milestone in delivering on its ‘Simplify to Grow’ strategy.
Alquemie Group’s core brands include General Pants and Insight, and it runs the local arm of Lego and National Geographic. The group is managed by CEO Scott Evans, the former chief executive of Mosaic Brands, which fell into voluntary administration last year.
Various news reports indicate that the National Geographic apparel business that Alquemie commenced managing in Australia since mid-2023 has quietly been closing down, with all stores shut.
Lego now has 23 stores across Australia, while General Pants has 55 stores. Insight clothing is sold through General Pants as well as via The Iconic.
Surfstitch was acquired by Ezibuy in 2018 after it fell into voluntary administration. This then formed into Alquemie Group.
According to a media report by the Australian Financial Review, a source close to the sale of Surfstitch and Ginger & Smart reported that both businesses were losing money.
The sell-off also comes three years after Ginger & Smart entered “strategic administration” to resolve some legacy challenges, as then reported by this masthead.
Ginger & Smart was acquired out of administration by Alquemie Group in 2019.