The encyclopedia · Strategy & Leadership · Strategic decision · 2025
Chloe Szepanowski's SZEP activewear went into liquidation after a year of trading
Australian influencer Chloe Szepanowski's SZEP activewear label was placed in liquidation in 2025 after only about a year in business.
SZEP · Chloe Szep Pty Ltd · Chloe Szepanowski · 2025-05-20
What happened
Australian influencer Chloe Szepanowski's activewear brand SZEP ceased trading in 2025, just roughly a year after it launched, and the company behind it was placed into liquidation. The label, sold through the trading entity Chloe Szep Pty Ltd, was built on Szepanowski's large social media following on Instagram and TikTok.
The liquidation was disclosed in 2025, with a liquidator combing through the financials of Chloe Szep Pty Ltd. The business had reported a working capital shortfall, and Szepanowski announced the closure of the activewear brand to her followers. The label had been positioned as a premium activewear line marketed directly to her audience.
The collapse followed a pattern common to influencer-owned brands: a celebrity or creator name can drive initial sales, but the underlying business — stock, fitting, returns, and the margins of a small fashion label — must stand on its own, and many such ventures fail within their first few years.
Why it happened
- The brand's sales were driven by the influencer's personal audience rather than by durable product demand, leaving the label vulnerable once attention shifted.
- A small activewear label carries heavy costs — design, manufacturing, inventory and marketing — that a one-person creator operation struggles to sustain.
- The company reported a working capital deficit, meaning day-to-day cash flow could not cover the business's obligations once the founder's promotions stopped converting.
The lesson
An influencer's audience is a launchpad, not a business model — a label needs real margins and working capital, and building it on personal reach alone collapses when the hype fades.
Aftermath
SZEP ceased trading and Chloe Szep Pty Ltd was placed into liquidation in 2025. The case is one of several influencer clothing brands to fail in the same period, joining a spate of creator-led fashion labels that could not convert followers into a sustainable business.
Sources
- Influencer Chloe Szepanowski's SZEP clothing label in liquidation — Gold Coast Bulletin (2025)
- Chloe Szepanowski announces closure of her activewear brand SZEP — PerthNow (2025)
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