Homegrown activewear brand faces shock collapse after a decade of operations
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Australian brands always boast high-quality craftsmanship at reasonable prices.
For fitness enthusiasts who have treated themselves to a pair of vibrant leggings or eye-catching tops, Exoticathletica may be one of these go-to brands.
However, fans of the Aussie-made activewear brand may have to hold on to their pieces.
Exoticathletica was founded in 2014 by Leilani Chandler and was inspired by the colourful fashion culture of Brazil.
Since its establishment, it has been a staple for many Australians looking to add a splash of fun to their workout wardrobe.
As of 9 April, the Queensland-based company has officially entered administration.
The exact reason for Exoticathletica’s collapse has not been revealed to the public.
A trail of debt left questions for loyal customers and Exoticathletica staff alike.
Matthew Richardson and Terry van der Velde from SV Partners stepped in as the company’s administrators.
Both administrators should be dealing with the company’s tangled finances and figuring out the next steps for the brand.
According to reports, Exoticathletica owes its employees $114,000.
This amount included $37,000 in unpaid superannuation, $73,000 in annual leave credits, $5,800 in long service leave, and $33,000 in pay in lieu of notice.
The company also owes $6.7 million to the Commonwealth Bank and about $5.4 million to unsecured creditors.
The brand’s manufacturer, Active Apparel Group, has been out of pocket for $211,000.
Australia’s retail sector has been under immense pressure in recent years.
Rising costs, supply chain disruptions, and changing consumer habits have made it tough for many Aussie brands to stay afloat.
Earlier this year, Jeanswest also faced the same fate and put up the majority of its stock on sale to recoup losses.
Women’s footwear brand Wittner, which has been in business since 1912, also entered administration.
The good news is that Exoticathletica has continued its operations while administrators look for a buyer for the brand.
The business has been up for sale via expressions of interest, giving the brand a chance for a second life.
Customers can still shop for their products. However, staff members and creditors may face uncertainty.
Administrators will be working through the company’s finances to see what can be salvaged and how much, if any, of the outstanding debts can be repaid.
For seniors who prefer to do their shopping in a centre, these changes could feel overwhelming.
However, it also highlighted the importance of supporting local businesses whenever we can.
Were you a fan of Exoticathletica’s colourful designs? Have you been caught out by a retailer going bust before? We would love to hear your thoughts and stories about Aussie brands in the comments section below.
For fitness enthusiasts who have treated themselves to a pair of vibrant leggings or eye-catching tops, Exoticathletica may be one of these go-to brands.
However, fans of the Aussie-made activewear brand may have to hold on to their pieces.
Exoticathletica was founded in 2014 by Leilani Chandler and was inspired by the colourful fashion culture of Brazil.
Since its establishment, it has been a staple for many Australians looking to add a splash of fun to their workout wardrobe.
As of 9 April, the Queensland-based company has officially entered administration.
Exoticathletica has a wide range of women and kids' activewear products. Image Credit: Exoticathletica
The exact reason for Exoticathletica’s collapse has not been revealed to the public.
A trail of debt left questions for loyal customers and Exoticathletica staff alike.
Matthew Richardson and Terry van der Velde from SV Partners stepped in as the company’s administrators.
Both administrators should be dealing with the company’s tangled finances and figuring out the next steps for the brand.
According to reports, Exoticathletica owes its employees $114,000.
This amount included $37,000 in unpaid superannuation, $73,000 in annual leave credits, $5,800 in long service leave, and $33,000 in pay in lieu of notice.
The company also owes $6.7 million to the Commonwealth Bank and about $5.4 million to unsecured creditors.
The brand’s manufacturer, Active Apparel Group, has been out of pocket for $211,000.
Australia’s retail sector has been under immense pressure in recent years.
Rising costs, supply chain disruptions, and changing consumer habits have made it tough for many Aussie brands to stay afloat.
Earlier this year, Jeanswest also faced the same fate and put up the majority of its stock on sale to recoup losses.
Women’s footwear brand Wittner, which has been in business since 1912, also entered administration.
The good news is that Exoticathletica has continued its operations while administrators look for a buyer for the brand.
The business has been up for sale via expressions of interest, giving the brand a chance for a second life.
Customers can still shop for their products. However, staff members and creditors may face uncertainty.
Administrators will be working through the company’s finances to see what can be salvaged and how much, if any, of the outstanding debts can be repaid.
For seniors who prefer to do their shopping in a centre, these changes could feel overwhelming.
However, it also highlighted the importance of supporting local businesses whenever we can.
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