SurfStitch turmoil deepens as Nike Australia launches legal action against now-collapsed brand

Global sportswear giant Nike is seeking to recover hundreds of thousands of dollars in debt from embattled Aussie retailer SurfStitch, which has since collapsed into administration.

Nike is taking legal action against SurfStitch.

Sportswear giant Nike has launched legal action against surf retailer SurfStitch in an attempt to recoup the hundreds of thousands of dollars it says it is owed.

SurfStitch, which was sold by its parent company Alquemie Group to an unknown buyer last month, placed itself into voluntary administration weeks after the legal proceedings were initiated, a notice lodged with the corporate regulator reveals.

Nike Australia, which sold sneakers and clothes on SurfStitch’s website, is pursuing a winding-up order against the brand, claiming it is owed a total of $237,760, according to court documents filed with the Supreme Court of Victoria.

Sportswear giant Nike has launched legal action against surf retailer SurfStitch. Picture: Michael Santiago

Winding up notices are usually issued by creditors of a company in order to enforce the payment of a debt.

If the debt is found legitimate and a company is unable to pay, the business is usually placed into liquidation by the court.

The matter is due before the court next week.

Even though SurfStitch has been placed into administration, the court can still order the business into liquidation.

An Alquemie Group spokesperson told News Corp that the company sold the SurfStitch business in May.

“We understand the new owners have subsequently appointed voluntary administrators,” they said.

An Alquemie Group spokesperson said the company sold the SurfStitch business in May. Picture: SurfStitch

SurfStitch’s website has been shut down for several weeks, displaying a message that states it is “currently undergoing maintenance”.

“We expect to be back soon. Thanks for your patience,” their site reads.

Law firm Cornwalls, who is representing Nike in the Supreme Court action, declined to comment.

Nike Australia is pursuing a winding-up order against the surf retailer. Picture: Jim Watson

SurfStitch administrators, Edwin Narayan and Domenic Calabretta of Mackay Goodwin who were appointed to the company on June 6, were contacted for comment.

The fresh legal action and administration mark another unexpected chapter in the SurfStitch saga, with the company previously collapsing in 2018.

The fresh legal action and administration mark another unexpected chapter in the SurfStitch saga. Picture: SurfStitch

It was previously reported that SurfStitch appointed administrators in 2017, with the retailer sold to Alceon Retail Bidco a year later – which is now known as Alquemie Retail Operations, a subsidiary of Alquemie Group.

Alquemie’s portfolio includes fashion retailer General Pants Co. and LEGO Certified Stores, with the group also offloading luxury fashion brand Ginger & Smart in May to the same undisclosed buyer that acquired SurfStitch.

The private equity firm is run by Richard Facioni, a long-time deal-maker in the retail industry and the former chairman of Mosaic Brands – the ASX-listed company that took in brands Noni B, Rivers and Millers, which collapsed last year.