Melbourne’s Sneakerboy faces liquidation in Adidas dispute

Luxury sneaker retailer Sneakerboy is facing liquidation after sportswear giant Adidas launched legal action over an unpaid bill.

Luxury sneaker and streetwear retailer Sneakerboy, which has shops in the Melbourne CBD and Chadstone, is facing liquidation after being taken to court by Adidas over an unpaid bill.

The sportswear giant has lodged an application to wind up Sneakerboy in the Melbourne Supreme Court.

If granted, the court will appoint a liquidator to take control of the company.

The liquidator may then decide to close the business and sell its assets in order to recoup money owed to Adidas.

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

Theo Poulakis.

It also has two shops in Sydney and a shop in Brisbane, selling high-end sneakers from brands including Balenciaga, Alexander McQueen, Gucci, Lanvin, Common Projects and Nike.

Both Sneakerboy and Adidas did not comment on the matter.

Sneakerboy is owned by Melbourne-based luxury retailers 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.

Rhodes & Beckett went into voluntary administration in 2017 but the business was restructured and sold.

A review of corporate record shows Sneakerboy was hit with a winding-up order in April last year but it appears to have settled the debt because the order was withdrawn.

Sneakerboy was caught up in another COVID-19 induced court battle late last year over unpaid rent.

It won the dispute when the NSW Supreme Court ruled the retailer should have until at least the end of April to recover from the pandemic before its landlords can increase its rent or evict it.

The case stood as a key test of rent relief measures introduced in NSW.

Insolvencies fell to a 20-year low last year amid the JobKeeper stimulus, loan and rent deferrals and the relaxation of insolvency laws.

The minimum amount of money owed to a creditor before they can seek to have a liquidator appointed by a court was temporarily increased to $20,000.

It reverted to the original $2000 amount on January 1, although the government is reviewing whether it should increase the threshold permanently.

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