The SurfStitch cadaver set to be picked over by sportswear giant Nike.
The once set-to-be-iconic and make-a-billionaire-out-of-anyone-who-had-a-piece-of-it online retailer SurfStitch has hit new lows with Nike taking it to court for what is, in context, a relatively paltry $237,000.
There was much mystery and whispers one months ago, you’ll remember, when online online sleuths brought the evaporation of SurfStitch from the internet to BeachGrit’s attention.
Once upon a time, of course, SurfStitch’s founders Lex Pedersen and Justin Cameron were the king and queen of the surf world with a bold vision to own the online retail space on everything surf and its peripheral rip-offs, skating, snowboarding etc.
A recap:
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.
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.
In the 2016 financial year, SurfStitch made two ten-year agreements with Coastalwatch and its various companies whereupon “Coastalwatch would provide a link on its website to SurfStitch Group’s Australian website for a fee of $8 million.”
Alceon Group acquired it in 2018, folding it into Alquemie Group, owners of Lego in Australia, 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.
After being offline for over a month, Alquemie revealed it had been sold, along with gal’s brand Ginger & Smart, to an unknown buyer who subsequently appointed voluntary administrators.
Now, Nike, a company that turns over 51 billion a year, is sore ’cause they say they’re owed $237,760.38 by SurfStitch and have taken ’em to court to recover the cash. The sportswear company submitted a request to liquidate SurfStitch in May, and the firm entered voluntary administration on June 6, according to records from the Australian Securities & Investments Commission (ASIC).
Still, a little of that of that famous Lex/Justin optimism remains.
On the SurfStitch landing page a message reads,
“Sorry, our site is undergoing maintenance. We expect to be back soon. Thanks for your patience.”