UK-based Frasers Group buys collapsed footwear retailer Sneakerboy

UK-based apparel and sportswear company Frasers Group has acquired collapsed Australian luxury footwear brand Sneakerboy Group, for an undisclosed sum.

The brand primarily sold luxury-label sneakers for upwards of $1500. In July, the Australian Securities and Investments Commission (ASIC) appointed Hamilton Murphy Advisory’s Stephen Dixon as the administrator for the business and two related companies using the Sneakerboy name.

Dixon informed creditors last month that he received 40 expressions of interest of which 22 were considered and were provided with confidential information. He accepted one offer among the four indicative non-binding submissions made and proceeded to conclude the sale.

“The secured creditors are therefore entitled to prove in the administration of the company for the balance of their debts that are not discharged from the proceeds from the sale.

“Accordingly, there will be insufficient funds from the sale of the Sneakerboy business and assets to enable a distribution to the unsecured creditors of the company,” Dixon told The Australian Financial Review.

According to reports, Sneakerboy owes its staff more than $500,000. Another $17 million was owed in supplier bills while $12 million was owed to a related entity.

The business owes money to 57 firms with only two secured creditors — Octet, which is owed nearly $2.8 million, and Luxury Retail Treasury, which has $12.3 million in payables owed.

Inside Retail understands that Frasers Group will retain Sneakerboy’s staff and assume employee entitlements, but will not take on any other liabilities from the business. The group has expressed an interest in maintaining the leases of its remaining stores.

A spokesperson for the administrators declined to comment today.

This article was first published by Inside Retail.