Creditors of Outland Denim revealed as they’re told to accept 20 per cent of debts or nothing

Creditors of a struggling Gold Coast fashion brand, favoured by celebrities and royals, have been offered a fifth of what they’re owed or risk getting nothing. Read who’s owed money

Creditors of a struggling Gold Coast fashion brand, favoured by celebrities and royals, have been offered a fifth of what they’re owed or risk getting nothing.

Outland Denim appointed a restructuring practitioner in March after directors realised it was unable to meet $522,933 in debts and was likely to become insolvent.

Creditors have also been told Outland’s purchase of failed Sydney brand Nobody Denim for an undisclosed sum late last year was of “no realisable value” to them.

A report from administrators has revealed the company owes tax in Australia and the UK and has debts to legal businesses, a British university and others.

The company is directed by founder James Bartle and Chinchilla cotton farmer Malcolm Valler.

James and Erica Bartle at their Outland Denim office in Mt Tamborine. Picture: Luke Marsden.

If creditors accept a restructuring plan from the directors, Mr Valler will pay a $104,587 lump sum, allowing them to receive 20 cents in the dollar of what they were owed, according to administrator James Robba of Worrells.

Among those creditors are the ATO, which is owed $359,924; professional services firm Vincents, owed $48,982; legal firm Haug Partners, owed $39,574; University of Nottingham, owed $37,759 and His Majesty’s Revenue and Customs, which is owed $5917.

If the creditors do not accept the directors’ plan, the company may be forced to liquidate, Mr Robba’s report said.

Outland bought the assets behind flailing Sydney brand Nobody Denim for an undisclosed sum five months before the administrator was appointed – assets the administrator said were currently worthless.

“The company has made inquiries with parties within the industry to see if there may be interest in acquiring the Nobody Denim fashion brand business from the company, but to date no interest has been received,” the report said.

Leonardo DiCaprio wearing Outland denim jeans and jacket while promoting a film with Brad Pitt.

The company sold the Outland brand and trading operations to a related company in June last year, the report said.

Outland was founded in 2011 in Mount Tamborine and made global headlines in 2018 after Duchess Meghan Markle wore a pair of Outland jeans, on a Royal tour to Australia.

She was also spotted wearing Outland to the Wimbledon Tennis Championship, while Hollywood actor Leonardo DiCaprio is also an advocate for the brand, wearing it in a high-profile magazine spread.

The attention supercharged the company’s expansion, enabling them to employ new seamstresses, most of whom had previously been victims of sex trafficking or forced labour, at their factory in Cambodia.