Sneakerboy Sold to UK Retail Group
News on this story was first published on August 4, 2022.
Update October 10, 2022: In August, it was announced that Sneakerboy would be going into voluntary administration. It has now been confirmed by The Australian Financial Review that the luxury footwear and streetwear retailer will live to see another day, as the business has been sold to UK-based apparel and sportswear firm Frasers Group. As reported by the AFR, the sum in question has been kept under wraps.
In terms of arrangement details so far, Frasers Group will take on employee entitlements but will not take on additional liabilities of Sneakerboy. Right now, Sneakerboy has three remaining stores in Victoria, Australia.
Last month luxury and hype sneaker retailer, Sneakerboy entered voluntary administration. The news was made official through an announcement by the Australian Securities and Investments Commission (ASIC), confirming that Stephen Dixon of Hamilton Murphy Advisory would be appointed as administrator, per news.com.au.
The news hasn't come as a surprise to many, as it's publicly known that Sneakerboy has racked up a number of wind-up orders over the past three years, and with the latest proceedings currently underway, further details have now come to light. Documents obtained by the news site reveal that $17.2 million is owed to more than 100 creditors, as well as $200,000 to Nike. In addition, $500,000 is also owed to 120 past and former staffers by way of pay and associated entitlements.
In the time since, two ex-Sneakerboy staffers have anonymously come forward to news.com.au, each under an alias, to share some of their experiences as employees in relation to recent events. Their insights detail being left unpaid, negative in-store run-ins and more.
Elliot stated, 'From 2018 there were a few warning signs, pay was occasionally a tiny bit late, like a day late.' He added, 'Then over the years it started to get out of control, in the last year it would be one to two weeks late. It was insane.'
Another ex-staffer under the name of Adam, shared that his mental health had deteriorated during his time working at Sneakerboy and that interactions with disgruntled customers and stakeholders were the worst. In particular, Adam mentioned an instance with a store landlord, in which Adam said that they were 'shouting at me and acting aggressively,' continuing, 'They blocked the exits, spoke very rudely and kicked me and other staff members out of the shop.'
According to news.com.au, there are a total of 36 buyers who are interested in acquiring Sneakerboy, which have come from 'a range of international and Australian parties across a broad industry spectrum'. Sneakerboy is also reportedly yet to comment on the matter.