The sports merchandise retailer has entered into voluntary administration – a temporary restructuring process used to save a business facing troubles
A major sports high street retailer has entered into voluntary administration.
Stateside Sports, one of Australia’s biggest retailers for NBA jerseys, NFL merchandise and sneaker apparel, now has 31 stores under review.
Voluntary administration is a temporary restructuring process. It is meant to save a business facing troubles or achieve a better return for creditors than what an immediate closure would offer.
This is different to liquidation, which is the legal process through which a business is dissolved. This typically involves selling the company’s assets to raise funds, which are then used to settle debts owed to creditors and shareholders.
It has been reported that the sports retailer will continue trading, but the future of it brick-and-mortar stores and online operations remains uncertain.
Antony Resnick and Henry Kwok, of advisory firm DVT Mcleods, were appointed as voluntary administrators on May 22.
Stateside Sports was founded in 2017. The business also stocks Australian sport products, including retro NRL jerseys as well as internationally-recognised brands including Nike, Jordan, New Era and Mitchell & Ness, 9News reported.
“While we will be focusing on changes in its operations and retail footprint as a matter of urgency, for now it is business as usual and products will continue to be sold in-store and online,” voluntary administrator Resnick said.
He added that the chain has been affected by lower discretionary spending, inflationary cost pressures and competition from global retailers.
“Australian retail has never been a game for the faint-hearted, but even for Stateside Sports, who are operating in a niche, youth-focused, brand relevant market, current trading conditions are tough,” Resnick said.
