The administrator for collapsed footwear retailer Sneakerboy is “urgently” reviewing its stock levels as customers raise concerns about delayed deliveries and frayed communication with the company.
Sneakerboy, a luxury sneaker and streetwear store with a presence in Melbourne, Sydney, and online, entered voluntary administration on Saturday.
While Sneakerboy became known nationwide for retailing shoes with price tags over $1500, the embattled company has now appointed Stephen Dixon of Hamilton Murphy Advisory to oversee its flagging fortunes.
On Tuesday, the Sneakerboy group of companies declared its voluntary administration was a “difficult but prudent decision” owing to “short term financing difficulties”.
Prior discussions with outside companies interested in purchasing Sneakerboy and its related entities are being “urgently expedited”, a statement read.
The companies issued a more pressing statement Wednesday afternoon, directly addressing customers who had pre-purchased shoes and other fashion goods from Sneakerboy.
“As part of the administration process, Hamilton Murphy Advisory is urgently reviewing stock and inventory levels held by Sneakerboy and consolidating that information for customers and creditors,” the statement read.
“As soon as all of this information has been collated, the administrator will be in contact with all customers to discuss their customer orders within the week.”
The first meeting of creditors is scheduled for Wednesday, July 12, with Hamilton Murphy Advisory set to update “all stakeholders in relation to the financial and structural position of the companies”.
SmartCompany has contacted Hamilton Murphy Advisory for comment.
While the administrator expedites its attempt to sell Sneakerboy to an interested buyer, the company’s webstore appears to remain online.
The site is still accepting expressions of interest for sneakers expected to go on sale July 23.
As the webstore remains online, so too do Google reviews of customers alleging Sneakerboy significantly delayed their deliveries and provided little feedback on the status of their orders.
Responding to one disgruntled customer this week, a Sneakerboy representative apologised for the hold up, declaring “there are some delays as we work through the busy sales and release period”.
Prior to its voluntary administration, Sneakerboy and its related companies were subject to numerous wind-up attempts filed by lenders, commercial landlords, and in one instance, footwear giant Adidas itself.
Sneakerboy previously escaped dissolution in 2015, when a voluntary administration process led to the company’s full-scale takeover by Luxury Retail Group.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
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