An Australian activewear brand that has been worn by celebrities is shutting down after 14 years, citing difficult market conditions. Melbourne-based Tully Lou, which described itself as “one of the original sportsluxe activewear brands,” has informed customers online that “everything has to go.”
“This chapter is changing. Maybe this is a pause. Maybe it’s a reinvention. Maybe we’ll be back in a different way,” the brand stated. “But right now, we know one thing: Everything has got to go.”
Celebrity Endorsements and International Recognition
Founded in 2012, Tully Lou gained international attention when supermodel Gigi Hadid was spotted wearing its leggings at a New York gym. The brand later built a loyal following and was stocked in prestigious department stores worldwide.
“Since 2014 Tully Lou has become an international leader in activewear being stocked in some of the world’s most renowned department stores,” the company said on its website. “With the expansion, the brand has collected a following of loyal customers along with celebrities who have been spotted in Tully Lou including Lucy Hale, Victorian Secret model Devon Windsor, Kelly Osbourne, Noah Cyrus, Vanessa Hudgens, Jenna Dewan, Ashley Greene and Morgan Riddle.”
Challenges Behind the Closure
Tully Lou’s chief operating officer Sarah Pasini and creative director Tully Humphrey previously discussed the difficulties of running the business in tough trading conditions on their Curious Conversations podcast. In a February episode, an emotional Humphrey acknowledged “cash-flow issues,” while Pasini noted that “things with Tully Lou are very hard.”
Speaking about the closure, Pasini said there was “no one reason” for the decision but believes a pause could allow the brand to return in the future. “This isn’t a goodbye or permanent closure, it’s simply a pause,” she told the Herald Sun. “The past two years, the reality of running a small business has become increasingly challenging. Rising freight costs, changing margins, increased operating expenses and a highly saturated market have created pressures that many small businesses are experiencing right now.”
7NEWS.com.au has reached out to Tully Lou for comment.
A ‘Killing Season’ for Retail
The closure comes amid a wave of retail shutdowns. June has been particularly brutal, with fashion retailer Glue closing all remaining stores and its website after nearly 30 years. Craft and fabric retailer Lincraft is shifting to online-only, impacting 300 staff, and Barbeques Galore is closing dozens of stores across Australia.
Queensland University of Technology retail expert Gary Mortimer noted that June is often a tough month for businesses. “I often refer to it as the killing season,” he told 7NEWS.com.au. “By the third quarter, most executive leadership teams and boards will have a clear understanding of what’s going to happen at the end of the financial year. You expect that budgets would have had benchmarks in place, and they’d be making some pretty big decisions.”
Mortimer explained that retail is particularly vulnerable due to its exposure to discretionary spending. “When interest rates go up, when rents go up, when electricity bills and cost of living prices go up, families become more concerned about putting food on the table, putting fuel in the car, paying those utility bills and rents and mortgages. They’re less concerned about buying a new fridge, buying a new outdoor setting, buying a new coat for winter.”
