"SurfStitch was losing money and had struggled for some time. Sales had shrunk to a fraction of what they once were.”
Much mystery and whispers a little under a week back when online sleuths brought the evaporation of SurfStitch from the internet to BeachGrit’s attention.
You’ll remember when SurfStitch was the king of the world, ruled by the yin and yang of Lex Pedersen, a cute brunette, and Justin Cameron, a bullish hot blonde with a vision to take SurfStitch to the heavens. The company they started in a little industrial area on Sydney’s northern beaches in 2007 soared to a half-a-billion-dollar valuation by 2014.
Heady, heady days.
And, then, poof, as they say.
A $155 million loss in 2016 was driven by the disastrous acquisition of FCS, Stab, Magic Seaweed and Coastalwatch and shareholder lawsuits over inflated forecasts.
By 2017, shares had crashed from two bucks to six pennies apiece, and SurfStitch entered voluntary administration, dubbed a “total collapse”.
Alceon Group acquired it in 2018, folding it into Alquemie Group, but recovery stalled. In 2023, Alquemie posted a $2 million loss, down from a $3.2 million profit, amid redundancies and a failed SurfStitch rebrand.
And, now, after being offline for over a month, Alquemie have revealed the joint has been sold, along with gal’s brand Ginger & Smart, to an unknown buyer.
A former employee of Alquemie told the Australian Financial Review, “both Ginger & Smart and SurfStitch were losing money and had struggled for some time. Sales, the person added, had shrunk to a fraction of what they once were.”
The owners are real into Lego instead of surf, skate, with the company having just opened its twenty-third Lego store. It also owns Australia’s version of Urban Outfitters, General Pants, which has a fifty-five stores.
Biggest question to Australian readers is, where to find twenty dollar Depactus trunks now? Keen readers will remember SurfStitch scooping up Depactus in 2017.
As Chas Smith asked at the time,
Oh and the best thing.
How could it fail?