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Rescued activewear brand promises credit to 13,000 customers
Rescued activewear brand STAX has appointed a new CEO and will provide credit to customers after an estimated 13,000 orders went unfulfilled.
- Activewear brand Stax, which fell into administration in June, has appointed a new CEO after it was bought by an investor group.
- The brand’s new management has promised to give customers credit for an estimated 13,000 orders that were unfulfilled when the business collapsed.
- The brand will return in early November as an online-only store.
Rescued activewear brand Stax has appointed a new CEO and will provide credit to customers after an estimated 13,000 orders went unfulfilled.
Anna Cheng, formerly director of marketing at car rental platform Turo, will lead the brand’s return, after it fell into administration in late June.
Investors Justin Truong and Sandy Li-Truong saved it from collapse at the 11th hour, after administrators found the business owed around $6.7 million in staff, supplier and tax costs.
Cheng said the first step in reviving the brand was building customer trust.
“We’re focused on the principles that never go out of fashion: reliable delivery, high-quality product and empathetic customer support, and on building with community at the centre, not just volume,” she said in a statement.
“For us, that means giving our customers something to be part of, not just something to buy.
“Our first job is proving that to our loyal Aussie customers: Stax is back, the product is better than ever, and we’re operating the right way.
“The ambition to scale comes after we’ve earned that trust.”
Part of the rebuild will include a customer goodwill program, after an estimated 13,000 orders worth $1.7 million went unfulfilled after the business was placed into administration.
“We’re making things right with customers who had unfulfilled orders under previous management by issuing them credit equivalent to the amount they paid,” Cheng said.
The new owners are not legally responsible for the program, but felt it was necessary to restore customer relationships.
The program will operate on a one-for-one basis, turning unfulfilled orders into store credit.
Stax will contact affected customers in writing and encourage them to log in to confirm their credit has been restored.
Cheng said the role came as a “dream fit” for her.
“Love the launch phase, but I especially love building for a customer I know really well: someone just like me,” she said.
“Fitness has been a huge part of my life since I was a kid (fun fact: I was athletics age champ most years of high school), and I still train every day.
“My washing machine gets through a ridiculous amount of activewear each week. So, yes, it felt like a dream fit.”
Stax will release a new online collection in early November. The business has given no indication of returning to brick-and-mortar stores as it rebuilds.
At its peak, Stax operated 14 physical stores that employed approximately 14 staff.
Prior to its collapse, the number of physical stores had dwindled to two flagship locations in Sydney.