Prospects at a luxurious Australian sneaker retailer are unlikely to obtain compensation for sneakers they purchased, and didn’t obtain, shortly earlier than the shop went into administration.
Sneakerboy, which ran shops in Sydney, Melbourne and on the Gold Coast, collapsed in July final 12 months.
However solely two months earlier, it was selling a sale, providing as much as 60 p.c off of sneakers, lots of which might in the end by no means be delivered.
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A current letter to collectors, seen by 7NEWS.com.au, says the corporate has “no funds accessible” to hold out compensation for victims.
James Chou was amongst those that took up the deal, paying $400 for a pair of Alexander McQueen sneakers he by no means obtained.
“Be trustworthy, do not deal with (individuals) like that … plus I will not ever purchase stuff from them once more,” he stated.
Chou managed to obtain a refund after emailing buy-now, pay-later firm Afterpay for a number of months.
However others are unlikely to be as lucky.
Sneakerboy’s Fb web page is riddled with individuals complaining that that they had not obtained their orders.
“I’m nonetheless ready on sneakers bought after the Pacific Honest retailer a month in the past. Nobody has known as me and I am unable to get in contact with anybody to even get an replace,” one individual stated.
One other stated: “Hello, in case you guys do not ship my order, I’m going to file a chargeback with my financial institution as you aren’t responding to my emails both.”
In a letter to collectors, dated December 12, 2022, insolvency and restoration companies Hamilton and Murphy wrote that Fraser Group Australia had bought the enterprise after it went into administration.
Nonetheless, it had “failed to substantiate their intentions to meet pay as you go orders, settle for reward vouchers or honor any exchanges or refunds”.
“There aren’t any funds accessible, neither is there any Sneakerboy inventory remaining, which could possibly be used to fulfill any excellent orders or course of refunds,” the letter stated.
Hamilton Murphy declined to remark when contacted by 7NEWS.com.au whereas Fraser Group didn’t reply.
An investigation is now underway to find out whether or not Sneakerboy traded whereas bancrupt.
Hamilton and Murphy liquidator Stephen Dixon stated in a report back to the Australian Securities and Investments Fee (ASIC) in December that Sneakerboy attributed its monetary difficulties to the pandemic.
Nonetheless, he stated that poor enterprise administration was additionally a outstanding issue.
“Primarily based on my inquiries to this point, I’m of the opinion that the corporate’s failure may be attributed to a deficiency of working capital, poor monetary management and poor strategic administration of the enterprise,” he stated.
The report estimated the corporate owed $1.7 million in worker entitlements, together with virtually $1.three million in superannuation.
“I’m working with the Division of Employment and Office Relations to confirm the Firm’s excellent worker entitlements,” Dixon wrote.
“I’ve accomplished verification work pursuant to the Honest Entitlement Assure scheme and encourage any former workers of the Firm to finish a web-based declare type in the event that they haven’t already accomplished so.”
Twenty-two former workers have made claims for unpaid entitlements.
Dixon estimated within the report it will take between 12 to 18 months to finish Sneakerboy’s liquidation.
Editor’s observe: The writer of this text is a buyer who was impacted by Sneakerboy going into administration.
