Fashion brand White Fox faces ASIC fine for failing to file annual accounts with regulator

Fashion giant White Fox faces a fine for never filing a financial report, as the $2bn empire built from a Sydney couple’s garage takes off in the world’s biggest market.

Georgia and Daniel Contos are the founders of the White Fox. Picture: Instagram

Fashion brand White Fox leads the list of private companies that the corporate regulator will fine as early as next week for failing to file financial reports.

The booming fashion house owned by Georgia and Daniel Contos, 34 and 35 respectively, started in a Sydney garage in 2013 in much the same way Jeff Bezos started Amazon, except the glamorous couple sold clothes. The notoriously hardworking pair have built their company from a tiny eBay outlet into a fashion behemoth appearing on buses and billboards across Australia, the US and the UK.

Their sales are said to be staggering, with some industry insiders predicting White Fox could be valued at $2bn based on its estimated revenue.

But the Australian Securities and Investments Commission is compelled to act because White Fox has not met its reporting obligations as a large proprietary company, as foreshadowed by The Australian.

The Australian is only reporting that the business is dealing with a compliance breach, not a tax breach. There are understood to be three other fashion companies that will be issued fines by ASIC for failing to report basic financials. White Fox is a documented tax payer and files its tax statements.

ASIC is working through a crackdown on non-lodgement by businesses that play an important role in the economy, based on their significant revenue, assets and number of employees.

An ASIC spokeswoman would not confirm that White Fox and others were about to be issued a fine. “But we expect to provide further information on the outcome of our review this calendar year,” the spokeswoman said.

White Fox owners Daniel and Georgia Contos. Source: Instagram

It is understood ASIC will issue infringement notices, of $198,000 per contravention, rather than pursue a criminal prosecution, which attracts a higher penalty of $396,000 per contravention. This is because its target cohort are first-time compliance offenders.

Just how much White Fox will reveal of its earnings remains to be seen. It could take the path of some technology companies which avoid disclosing US earnings by invoicing the US entity for the cost of the goods.

The Contoses did not wish to be interviewed for this article. But America is understood to be White Fox’s biggest market and the brand hosts pop-ups at key Insta-famous US music festivals like Coachella.

The pair became early adopters in marketing through influencers after Georgia posted a picture of Kim Kardashian in a similar frock to one she was selling on eBay and it was snapped up for double the price.

Clever marketing and an ability to read trends has helped White Fox hoodies and barely-there dresses sell for a significant premium over similar products at fast fashion outlets such as Shein.

A model wearing a White Fox hoodie.

One fashion-focused private equity banker predicts White Fox might be pulling in close to $500m in revenue annually.

The Contoses also started a fake tan brand Baddest Bod in 2022, which has already become the top selling self-tanning product this year in Chemist Warehouse.

Bumper cashflows have helped the pair fund their $150m purchase of several residential properties in the harbour front suburb of Vaucluse. Those homes have been demolished to create one (very) large and glamorous residence with a tennis court and pool overlooking the Sydney Harbour Bridge.

The Contoses lead a pack of young fashion entrepreneurs getting wealthy from entrepreneurial beginnings. Just last week, womenswear label Meshki revealed in ASIC filings an after-tax profit of $28m and 148 employees started by fellow 30-somethings Shadi Kord and Nazanin (Natalie) Khoei 12 years ago. The friends, of Iranian heritage, named their company after the Farsi word for black, and started their businesses selling on Instagram.

Ms Kord and Ms Khoei awarded themselves a $22m dividend.

While White Fox targets the teen and early 20-somethings, Meshki’s slinky evening dresses and bikini range skews older.

Like the White Fox pair, Ms Kord and Ms Khoei paid $23m and $48.5m respectively for properties in the neighbouring suburb of Bellevue Hill.

Originally published as Fashion brand White Fox faces ASIC fine for failing to file annual accounts with regulator