A prominent sports retailer on the high street has gone into voluntary administration.
Stateside Sports, one of Australia’s largest stockists of NBA jerseys, NFL merchandise and trainer apparel, now has 31 stores under review.
Voluntary administration is a temporary restructuring process designed to rescue a struggling business or secure a better outcome for creditors than an immediate closure would provide.
This differs from liquidation, which is the legal procedure through which a company is wound up. This typically involves selling off the firm’s assets to generate funds, which are then used to settle outstanding debts owed to creditors and shareholders.
Reports suggest the sports retailer will carry on trading, though the future of its physical stores and online operations remains unclear.
Antony Resnick and Henry Kwok, of advisory firm DVT Mcleods, were appointed as voluntary administrators on May 22.
Stateside Sports was established in 2017. The business also carries Australian sporting goods, including retro NRL jerseys, as well as globally recognised brands such as Nike, Jordan, New Era and Mitchell and 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 noted that the chain has been impacted by reduced discretionary spending, inflationary cost pressures and rivalry from international 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.
