The encyclopedia · Strategy & Leadership · Financial decision · 2021–2025
SurfStitch collapsed into administration after 5 loss years and a Nike wind-up suit
After five straight loss years, a Nike wind-up suit over ~$238K tipped this Australian surf-street retailer into a $13.28M administration.
SurfStitch Pty Ltd · Alquemie Group · 2025-06-06
What happened
SurfStitch was an Australian online retailer of surf, skate and street-style apparel and footwear, stocking Nike, Adidas, Vans and streetwear labels, owned by the Alquemie Group. Sales fell almost every year after peaking in June 2021 — from $60.1M in FY21 to $29.8M in FY24 and just $7.95M in FY25 — with five straight years of net losses (an operating loss peaking at $2.14M in FY24).
On May 20, 2025, as Alquemie sold SurfStitch and its sister label Ginger & Smart to asset manager Best Markets in a share-only deal delivering no capital (talks had run since September 2024), Nike Australia launched a winding-up application in the Supreme Court of Victoria claiming roughly $237,760 owed. On June 6, 2025 SurfStitch Pty Ltd was placed into voluntary administration, with Edwin Narayan and Domenic Calabretta of Mackay Goodwin appointed administrators.
The administrators' report filed to ASIC in July 2025 revealed total liabilities of $13.28M — $8.27M secured and just over $5M unsecured — and a creditors' deed (DOCA) that was approved, returning unsecured creditors 4.73 cents on the dollar. Control returned to Best Markets, and the brand relaunched under new leadership with a new website in December 2025.
Why it happened
- Five straight years of net losses and sales that fell almost every year since 2021 left SurfStitch with no buffer when a major supplier pressed its claim.
- A thin balance sheet meant one determined creditor — Nike Australia's ~$238K winding-up application — could force the whole business into administration.
- The share-only sale to Best Markets delivered no capital relief, so the underlying insolvency carried straight into formal administration.
The lesson
A retailer that keeps losing money every year is only safe until one big creditor files a winding-up suit. Nike's ~$238K claim tipped five years of losses into a $13.28M administration.
Sources
- SurfStitch liabilities top $13.28 million — Ragtrader (Jul 2025)
- Nike Australia wind-up order applies creditor pressure on SurfStitch Pty Ltd in administration — SmartCompany (Jun 2025)
- SurfStitch placed into administration amid court action by Nike Australia over alleged debts — 7NEWS (2025)
spotted an error? The club wants to know.
More like this
Glue Store, Australia's streetwear fixture for 27 years, closes all 16 stores
Stateside Sports, Australia's NBA-jersey chain, enters administration after nine years
Geedup built a streetwear cult and a $98M founder — then the taxman closed it
Somewhere, someone solved the problem this company failed at. 2nd Opinion →
Comments · 0
Sign in to join the comments.