Sneakerboy settles $1.35m dispute with Adidas and tax office

Luxury Melbourne retailer Sneakerboy has avoided liquidation, settling its disputes with former supplier Adidas and the Australian Taxation Office.

High-end sneaker retailer Sneakerboy has avoided liquidation, settling its disputes with former supplier Adidas and the Australian Taxation Office.

Sneakerboy, which operates three stores across Melbourne, has struck deals with both Adidas and the tax office to settle disputes covering close to $1.35m in unpaid bills and superannuation.

Adidas launched liquidation proceedings against the niche retailer in March, claiming it was owed $148,000.

An initial hearing in the case heard the tax office was also pursuing Sneakerboy, which sells luxury sneakers from brands including Balenciaga, Alexander McQueen, Gucci, Lanvin, Common Projects and Nike, for $1.2m in unpaid super and taxes.

Sneakerboy has avoided liquidation.

The tax office told the court it would take over the liquidation push against Sneakerboy if the Melbourne-based retailer settled its dispute with Adidas.

The Supreme Court in Melbourne on Tuesday heard Sneakerboy had settled its matters with both Adidas and the tax office.

Both parties have dropped their claims against the retailer.

The court heard Sneakerboy was up to date with its tax and super payments and was not facing any further creditor claims.

Details of the Adidas settlement were not provided.

Associate Justice Simon Gardiner said the legal manoeuvring around the retailer “has been something of a saga”.

Sneakerboy last month pledged to review the pay details of all current and former employees.

The move followed the legal push by the tax office and the Herald Sun being contacted by a number of former employees who said they were owed super.

Sneakerboy’s Melbourne CBD store.

Sneakerboy has three shops in Melbourne at Little Bourke Street in the city, Chadstone shopping centre and South Wharf DFO.

It is getting ready to open a new $3.5m flagship store in Sydney.

The business is owned by Melbourne-based Luxury Retail Group which also operates Mulberry in Australia.

Luxury Retail is backed by Nelson Mair and Theo Poulakis who together founded up-market menswear business Rhodes & Beckett.

Mr Poulakis is also a former owner of swanky menswear retailer Harrolds.

Sneakerboy risked having the court appoint a liquidator if it had not settled the matters with Adidas and the tax office.

A liquidator may have chosen to close the business and sell off its assets in order to recoup funds for creditors.

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