Popular Australian activewear brand STAX has entered receivership, with FTI Consulting appointed to urgently assess the company's future. Joseph Hansell and Asjadi Hone of FTI Consulting were appointed as receivers and managers of the brand, which was famously launched from a bedroom in Perth in 2015 by rich-listers Matilda Murray and Don Robertson.
STAX's Rise and Fall
STAX grew a cult following for its fashion-forward pieces offering inclusive sizes for every body shape and type. The brand operated an online store and two physical locations in Sydney's CBD and Liverpool. At its peak, the business was reported to be worth $52 million. However, cost-of-living pressures have hit the brand hard in recent years, forcing the closure of several physical stores as inflation rose, interest rates spiked, and consumers tightened spending.
Receivership Details
"STAX is a well-known Australian brand with strong customer support. STAX has done something genuinely impressive proving that premium activewear does not have to choose between performance and style," Hansell said in a statement. "The business is trading as usual while the Receivers undertake an urgent assessment of the company's operations." Further updates will be provided as the process continues, the consulting firm said.
Celebrity and TikTok Fame
STAX gained widespread popularity after being worn by celebrities such as Jennifer Lopez, Lizzo, and Megan Fox. The brand saw a surge in 2022 when TikTok influencer Anna Paul collaborated with STAX, and a pop-up store in Perth attracted such a large crowd that police were called to manage the influx.
Broader Economic Impact
STAX is the latest Australian brand to succumb to financial pressures. Most recently, Barbecues Galore announced it would shut 52 stores and cut around 500 jobs. Murray and Robertson, who have featured on the Australian Financial Review's Young Rich List, have been forced to adapt to the challenging economic environment.
