Australian activewear brand Stax is hoping for a second wind after its spectacular collapse earlier this year, with new owners offering up to $1.7 million in store credits to win back customers left out of pocket.
The brand, once favoured by celebrities, collapsed with almost $24 million in liabilities.
It has now appointed former Turo marketing director Anna Cheng as CEO and is preparing to launch its first collection under new ownership on November 6.
But before Stax makes a comeback, it has some unfinished business.
Cheng told SmartCompany approximately 9,500 customers had confirmed their outstanding order details after the company contacted around 13,000 customers left with unfulfilled orders under its previous owners.
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“It just didn’t feel right for us to relaunch without addressing the elephant in the room first,” Cheng told SmartCompany.
“There are a lot of customers who trusted the brand, dedicated their hard-earned money to purchasing products from the brand, and ultimately never received their orders.”
Stax entered receivership in June before being placed into liquidation in July, with its collapse leaving customers, suppliers and other creditors out of pocket.
The brand’s assets were snapped up in August by a private Australian investor group led by Justin Truong and Sandy Li-Truong, the entrepreneurs behind sneaker marketplace Pushas. The acquisition included Stax’s intellectual property, but not the debts of the collapsed business.
Making amends after a $24 million collapse
Cheng said the new owners wanted to make amends with customers left out of pocket, offering credits equivalent to the value of their unfulfilled orders.
“We weren’t legally obliged to do anything when the business was purchased. We acquired the IP, but not the debt. But we still felt like it was the right thing to do,” Cheng said.
The credits cover the full value of eligible outstanding orders, minus any refunds or chargebacks.
Customers have until December 31 to confirm their order details and until June 30, 2027, to redeem their credits.
Customers who paid through third-party providers, including buy now, pay later services, are excluded because Stax cannot verify payments or refunds.
They are instead being directed to their providers’ dispute processes.
Asked why Stax was offering credits rather than refunds, Cheng said it was a way to compensate customers while rebuilding the business.
“Ultimately, we’re a new business rebuilding from the ground up, and credit is just the way that we can make this work and still be here to look after customers properly. “
Putting Stax back on track
Cheng said Truong and Li-Truong met with suppliers left out of pocket by the collapse, persuading several major suppliers to return.
Former head of product Georgia Bachmann has also returned as creative director, alongside designer Jaclyn Benson, to maintain the brand’s designs and improve quality control.
Stax has also engaged a third-party logistics provider, targeting dispatch times of 24 to 48 hours.
“Fulfillment is actually part of the product experience,” Cheng said.
“A customer ultimately judges us on whether the order arrives when we said it would.”
Cheng declined to disclose how much the new investors had committed, but said the business was no longer under pressure to pursue rapid growth.
“We can grow at a pace that we can keep delivering high-quality products [while] also meeting customer expectations.”
A fresh collection and a new face at the helm
The brand will launch its first collection under new ownership, Girls Gone Wild, on November 6, with early access for waitlisted customers on November 5.
The collection will include the return of Stax’s signature Nandex and Airlyte fabrics, with the latter updated to include antibacterial properties and UPF 50 protection, according to the company.
Cheng said Stax would initially operate exclusively online, although didn’t rule out a return to retail stores.
“Physical stores are not off the cards, but we will only do that when the timing is right,” she said.
Before joining Stax, Cheng helped launch investment platform Spaceship and later led the Australian launch of US car-sharing marketplace Turo.
A former track and field athlete who still trains daily, Cheng said her passion for activewear made the role particularly appealing.
“I love the launch phase for companies, and I love a good underdog story as well,” she said.
Cheng said the real test for Stax will be winning back customers and keeping them.
“What we’re really optimising for is getting that fifth order from the same customer, which ultimately comes from quality, fit, and service,” she said.
“That’s what we’re building towards.”