Fresh blow for unsecured creditors of collapsed activewear brand Exoticathletica
Unsecured creditors owed millions from the collapse of Australian activewear brand Exoticathletica may see little to no return, as administrators scramble to secure a last-minute buyer.
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Unsecured creditors owed millions from the collapse of popular Australian women’s activewear brand Exoticathletica could be left empty-handed, as administrators scramble to secure a last-minute buyer.
With no deal proposed to creditors by the company’s director, the business is likely to be tipped into liquidation at a meeting next week, but it will continue to trade.
The athleisure brand, which specialises in boldly printed, brightly coloured gym clothes for women of all sizes, entered administration earlier this year owing nearly $13m to creditors.
Administrators Matthew Hudson and Terry van der Velde of SV Partners, who have been assessing the company’s financial fallout, recommended creditors vote to liquidate the company at the upcoming meeting with “no other viable alternative”.
They said they were yet to receive a rescue deal proposal from director Leilani Chandler.
Mr Hudson said the Noosa-based company would continue to trade if it was placed into liquidation.
“The liquidation of the company does not prohibit the continued operation and trading of the business – pending the possible sale of the business and/or the orderly wind down of the business and the sale of the remaining stock,” he said.
The administrators previously said the company’s total assets were yet to be advised, but estimated the value of stock to be around $2.5m at the time of the collapse.
Mr Hudson said his office had taken steps to list the business for sale and had engaged a business broker.
“We are continuing to operate the business to try to sell it in the near future. We are of the view this is in the best interest of all stakeholders,” he said in a report to creditors.
The administrators are continuing to liaise with “a number of interested parties”, he said, after an expression of interest campaign was undertaken in May and June 2025.
“Given we are continuing to liaise with interested parties regarding the possible sale of the business, we have withheld information about the prospective sale from this report so as not to prejudice any possible sale.”
They said they had received offers to purchase some of the company’s plant, equipment and furniture for $4,350.
“We are liaising with our agent to collect the remaining plant, equipment and furniture and prepare them for sale via public auction,” he said.
Mr Hudson said he anticipated sufficient funds would be recovered to pay a dividend to employees owed $113,968, and a partial dividend to the major secured creditor, banking giant Commonwealth Bank of Australia, owed $6.7m.
But they said it was “unknown” whether sufficient funds would be recovered to pay a dividend to unsecured creditors owed an eye-watering $6m.
Mr Hudson said the amount of any possible dividend payments to creditors was dependent upon a range of factors, including the amount of funds recovered from the sale of the business and/or assets, any recoveries from their investigations, as well as the costs of the voluntary administration and expected liquidation.
Their initial investigation into the company indicated that creditors may be able to pursue a potential insolvent trading claim if the company was placed into liquidation.
Financial records show gross profit for the fashion label plummeted from $12.1m in FY2022, to $5.3m in FY2024. Profit for the financial year to date sits at $3.9m.
“Our preliminary investigations have identified the company incurred losses for the three financial years prior to the administration,” they said.
“We note however, based on our preliminary review of the financial information available to us, the company appears to have maintained sufficient working capital to meet its due and payable debts until June 2024; after this time, the company accrued taxation liabilities and debts to trade creditors.
“In addition, our preliminary investigations have identified some possible voidable transaction claims that require further investigation in a liquidation.
“If the company is placed into liquidation at the forthcoming meeting of creditors, an update on the investigations conducted in the expected liquidation will be provided by no later than October 29.”
Exoticathletica was founded in 2014 by Leilani Chandler, according to their website, designed to “help women enhance and accentuate their bodies and unapologetically celebrate their uniqueness”.
It understood the brand briefly had an outlet at Sunshine Plaza in Maroochydore that opened in 2019.
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Originally published as Fresh blow for unsecured creditors of collapsed activewear brand Exoticathletica
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