Struggling Surfstitch slips into administration
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Struggling surfwear chain, Surfstitch Group, has today entered administration after appointing John Park, Quentin Olde and Joseph Hansell of FTI Consulting effective immediately.
The retailer’s online companies, SurfStitch (Aus), SurfDome (UK) and Swell (US), and publishing businesses MagicSeaweed (UK) and Stab (Aus & US) will continue to trade while the administration process takes place.
Sam Weiss, chairman of Surfstitch, said that the companies “reluctantly made the appointments due to several significant external challenges including two Class Actions, protracted litigation and an ASIC investigation which have brought high levels of uncertainty impacting the companies’ trading position.”
“The administrators have been appointed with the intention of preserving value for stakeholders in the business whilst recapitalisation options are pursued.”
John Park, leader Australia, corporate finance & restructuring of FTI Consulting, said the administrators will work closely with the operating businesses to preserve value for stakeholders.
Questions & Answers
Q.Which specific companies within the Surfstitch Group will continue to operate during administration?
Which specific companies within the Surfstitch Group will continue to operate during administration?
The online retail companies SurfStitch (Australia), SurfDome (UK), and Swell (US), along with the publishing businesses MagicSeaweed (UK) and Stab (Australia & US), will all continue trading.
Q.What reasons did the chairman give for Surfstitch entering administration?
What reasons did the chairman give for Surfstitch entering administration?
Chairman Sam Weiss cited several significant external challenges, including two Class Actions, ongoing litigation, and an ASIC investigation, as reasons for the appointment. These issues created high levels of uncertainty.
Q.What is the primary goal of the administrators from FTI Consulting?
What is the primary goal of the administrators from FTI Consulting?
The administrators have been appointed with the intention of preserving value for stakeholders in the business. They will work closely with the operating businesses while recapitalisation options are explored.
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