NZ retailer EziBuy is new SurfStitch owner

BURLEIGH Heads-based e-tailer SurfStitch finally has a new owner — eight months after it fell into voluntary administration.

Creditors have supported a move by NZ retailer EziBuy to acquire SurfStitch. Picture: Nigel Hallett

NZ RETAILER EziBuy has won the battle for Burleigh Heads-based e-tailer SurfStitch.

This afternoon, creditors backed the proposal by Alceon Group — the owner of EziBuy — to take over SurfStitch, which fell into voluntary administration in August last year.

Independent company director Abigail Cheadle’s proposal, backed by SurfStitch co-founder Lex Pedersen, failed to find favour with creditors.

Administrators John Park, Quentin Olde and Joseph Hansell, of FTI Consulting, had backed the EziBuy bid and called a letter Ms Cheadle sent to shareholders “misleading”.

They said the letter, which included the terms of a revised proposal from Ms Cheadle, was not an accurate summation.

The vote today ends the latest chapter in SurfStitch’s brief, but turbulent history, as a listed company.

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SurfStitch floated in December 2014 at $1 per share after founders Justin Cameron and Mr Pedersen bought out Billabong’s 51 per cent stake.

The company’s market capitalisation in late 2015 was around $550 million.

In 2016 the company suffered huge loss, a share price wipe-out, and the exit of co-founder Mr Cameron.

Rapid acquisitions in manufacturing, digital media, and bricks-and-mortar retail hurt the company as well as a legal dispute with surf technology group Coastalwatch and Three Crown Investments.

There were also two class action lawsuits launched on behalf of shareholders seeking $100 million and $500 million in damages.

By the time shares were put in a trading halt in May last year, they were worth just 6.8c.

Under the terms of EziBuy’s proposal, creditors will be paid out in full.

SurfStitch creditors, shareholders and group member claimants (shareholders involved in the class action lawsuits) receive equity in EziBuy and a commitment that there will be either an initial public offering or trade sale within three years.

Further clarification of voting numbers at yesterday’s meeting in Sydney was expected to be released via the ASX by the administrators tomorrow.