Surfstitch’s fate delayed as administrator sells off digital assets
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Creditors of online surf wear retailer SurfStitch will have to wait at least until December to find out the fate of the failed company after its administrators were given more time to sort through the books.
SurfStitch (ASX:SRF) administrators FTI Consulting told shareholders on Tuesday it would take until December 21 to sort through the legal and financial woes — though they were hopeful of a return to operations.
A second meeting of creditors is to be held by January 2.
At the first creditors meeting on September 5, administrator John Park said he was considering a proposal from “someone who’s been involved with SurfStitch” that would see the company relist on the ASX.
FTI has been busily offloading a bundle of SurfStitch digital media assets including surf forcaster site Magicseaweed and magazine STAB — bought for some $20 million in 2015.
“The transaction ensures the continuity of the business and is a good outcome for the Magicseaweed business and its employees,” administrator Quentin Olde said.
SurfStitch shares were suspended in late May at 6.8c — a fraction of their $1 issue price in December 2014.
In August, chairman Sam Weiss told shareholders the business he inherited on joining the board in July “was built on far reaching and ambitious plans”.
At that time the company had announced four acquisitions, a new ecommerce platform and an online action sports community off the back of a $5.7 profit in the six months to December 2015.
Surfstitch’s listed and holding companies have been in administration while their various operating businesses have continued to trade.