Popular Australian women’s activewear brand goes bust, owing millions to creditors

A beloved Noosa-based women’s activewear company has filed for voluntary administration, owing creditors $13m.

A popular Australian women’s activewear company has gone bust, owing $13m to creditors.

Founded in 2014 by Leilani Chandler in Noosa, Exoticathletica is best known for its size-inclusive, vibrant and bright activewear and quickly became a popular choice for women across the country.

However, the brand filed for voluntary administration on April 9, turning to insolvency firm SV Partners Terry van der Velde and Matthew Hudson to search for potential buyers while they comb through the financial debris.

Exoticathletica has collapsed, owing millions to creditors. Picture: Instagram

The brand is best known for its inclusive and bold designs. Picture: Instagram

Commonwealth Bank – the secured creditor for the business – is owed $6.7m, while the brand owes unsecured creditors more than $6.2m.

This includes $211,000 to manufacturers Active Apparel Group, $311,000 to Andorra Australia, $447,000 to Dongguan Huachen Sporting Goods Co and $416,000 to D and J International.

The sporting brand also owes over $550,000 to e-commerce giant Shopify, $224,000 to American Express, $53,00 to PayPal , $136,00 to Invenco and $114,00 to Thread Collective Co.

Customers have suffered a loss of $172,000, and the Noosa-based business owes $800,000 to the Australian Taxation Office (ATO).

Employees have also been left $114,000 out of pocket, with $37,733 in unpaid superannuation.

The brand is continuing to operate, despite owing $13m to creditors. Picture: Instagram

Minutes from the first meeting with creditors on April 23 said the business would continue trading to “maximise the funds recovered from the sale of stock”.

“The administrators also intend to list the business for sale shortly,” the minutes read.

“After the business is listed for sale, the financial position of the company and the anticipated return to creditors will be more certain.”

While the company’s total assets are yet to be advised, the administrators estimate its stock to be valued at $2.5m.

“We have continued to trade the business to preserve its value, with the aim of maximising the return to creditor,” Mr Hudson said per Courier-Mail.

“This strategy has allowed the business to remain operational, thereby maintaining its goodwill, customer relationships and employee engagements.

“By trading the business, we have sought to facilitate a sale of the business as a going concern.”

A second meeting with creditors is slated to take place next week. Picture: Instagram

Exoticathletica was founded by Ms Chandler in 2014 and was inspired by “Brazil’s fitness fashion culture, their celebration of feminine curves and bold designs that encourage women to express themselves”.

The brand is best known for its inclusive designs which aims to “help women enhance and accentuate their bodies and unapologetically celebrate their uniqueness”.

Between April 2020 and April 2021, the brand found success selling a wire-free crop top, with more than 140,000 customers purchasing the $49.99 activewear.

A second meeting with creditors is expected to take place next week.