Australian activewear brand Stax, once a favourite among A-list celebrities, has been given an 11th-hour lifeline after being bought out by a private investor group. While the news of the brand's revival has been met with cautious optimism, thousands of customers are still asking one pressing question: will they ever receive their orders or get their money back?

Stax was plunged into receivership in June, owing a staggering $23.7 million to creditors. This included more than $450,000 in unpaid staff entitlements and $7.3 million owed to the National Australia Bank. Thousands of customers were also left out of pocket over unfulfilled and partially completed orders worth $1.7 million. The company was subsequently wound up and entered voluntary administration days later, leaving its future uncertain.

New Owners Step In

On Monday, it was announced that Stax had been acquired by a private Australian investor group led by Justin Truong and Sandy Li-Truong, the husband-and-wife entrepreneurs behind the e-commerce marketplace Pushas. The couple, who have been recognised on the Forbes 30 Under-30 List, have acquired the brand's trademarks, design intellectual property, and digital assets for an undisclosed sum.

While online sales remain unavailable for now, Stax's social media pages have teased a relaunch in the coming months. The new owners have made it clear that the acquisition will operate as a separate entity to Pushas, which is an online marketplace for sneaker resellers founded by the couple in 2017. Within five years of launching Pushas, the Truongs had earned a spot on the prestigious Forbes list, cementing their reputation as savvy entrepreneurs.

Customer Concerns and Unfulfilled Orders

One of the most significant issues surrounding the Stax collapse has been the fate of customers who paid for orders that were never fulfilled. The new owners have stressed that they are not legally responsible for unfulfilled orders placed under the original co-founders, Don Robertson and Matilda Murray. This has raised questions about whether affected customers will ever receive their items or refunds.

In a statement, Sandy Li-Truong acknowledged the concerns of the brand's loyal customer base. "Stax remains one of Australia's most recognised activewear brands, with a loyal customer community and strong long-term potential," she said. "Don and Matilda built something special: a fashion-forward activewear brand centred around the belief that every body is a Stax body."

She added, "Our responsibility now is to earn the trust of the Stax community. That starts with bringing in a team that can rebuild the business on strong foundations, invest in quality and deliver the experience customers expect from the brand."

Justin Truong also addressed the issue directly. "Although legal responsibility for orders placed with the previous entity did not transfer to the new ownership, we recognise the impact on affected customers and are actively exploring meaningful ways to support them as the brand relaunches," he said. This has given some hope to customers who feared they would never see their money or products again.

The Rise and Fall of Stax

Stax was founded by Don Robertson and Matilda Murray in a Perth bedroom in 2015. The brand quickly gained traction for its inclusive and fashion-forward activewear, which resonated with a wide audience. By 2019, the couple relocated to Sydney to expand their business empire, and the brand's popularity soared.

At its peak, Stax was worth an estimated $52 million, earning Robertson and Murray a spot on the Australian Financial Review's 2022 Young Rich List. The brand also drew strong support from around the world, with US celebrities such as Jennifer Lopez, Lizzo, and Megan Fox praising the clothes. Other high-profile fans included Rita Ora, Hailey Bieber, and Addison Rae, all of whom were seen wearing Stax designs.

The brand's rapid growth was fueled by a strong social media presence and endorsements from influencers and celebrities. Stax once operated eight physical stores across Australia, but the business began to struggle as economic conditions deteriorated. Last year, the company closed all but two of its stores due to rising interest rates and changing consumer behaviour. The final two stores were shut down last month when the company went into liquidation.

Founders' Apology

In the wake of the collapse, co-founders Don Robertson and Matilda Murray issued a grovelling online apology to impacted customers. "First and foremost, we're truly sorry for this and for not communicating earlier," the couple said in a joint statement. "Stax was built over more than a decade with an incredible community and knowing that so many of our customers have been impacted is something we carry every day."

They acknowledged the frustration and disappointment felt by customers who had paid for orders that were never delivered. "If you placed an order and haven't received it, we completely understand why you're upset," they said. "Decisions regarding outstanding orders and the administration of the business are now being managed through that process."

The apology also included a note of gratitude to those who had shown kindness during what they described as "the most difficult chapter of our lives." Despite the apology, many customers remain sceptical about whether they will recoup their losses, as the new owners are not legally obligated to honour the debts of the previous entity.

Plans for the Future

The new owners are wasting no time in rebuilding the Stax brand. Justin Truong has been appointed as the new chairperson and is already on the hunt for a new chief executive who will be in charge of the day-to-day operations. The goal is to bring in fresh leadership while maintaining the core values that made Stax so popular.

"This is such an iconic Australian brand that we want to give it another chance. It could have been sold off to a faceless corporation that could strip it for parts," Truong said. "We have enormous respect for the community the founders built over the past decade."

Truong also hinted that former Stax staff could return to the fold. "It won't be an entirely new team," he told Nine newspapers. "We'll see who in the previous team we'll bring back. It's good to have continuity." This suggests that the new owners value the experience and institutional knowledge of the original staff, which could help ease the transition and rebuild trust.

What's Next for Customers and Creditors

For customers who are still waiting for their orders, the uncertainty continues. While the new owners have said they are actively exploring ways to support affected customers, no concrete plan has been announced yet. Creditors, meanwhile, will need to go through the formal administration process to recoup any funds, though it is unlikely they will recover the full amounts owed.

The sale was facilitated by FTI Consulting receiver Asjadi Hone, who described the deal as a positive development. "This is a great outcome for the brand to restore trust with its large and loyal customer community across Australia," she said. "The new owners will appoint a team to focus on rebuilding the brand while maintaining the product quality, inclusivity and community connection that has defined Stax since its launch."

The Stax scandal has also raised broader questions about the risks of buying from smaller, rapidly growing brands that may not have the financial stability of larger retailers. While many customers are drawn to the unique designs and inclusive messaging of brands like Stax, the collapse serves as a reminder that paying upfront for pre-orders and online purchases always carries some risk.

As Stax prepares to relaunch, the brand's future will depend on its ability to rebuild trust with its community. The new owners have expressed a commitment to quality and customer experience, but only time will tell whether they can successfully bring Stax back to its former glory. For now, the focus is on getting the fundamentals right and ensuring that the mistakes of the past are not repeated.

With a new leadership team, a clear vision, and a loyal customer base that is eager to see the brand succeed, the revival of Stax could become one of the more remarkable turnaround stories in Australian retail. However, the lingering question of unfulfilled orders remains a cloud over the relaunch, and how the new owners handle this issue could define their relationship with the Stax community for years to come.

Source:MSN News