SurfStitch bails out of Surfdome scene
BURLEIGH-BASED SurfStitch Group has offloaded another of its offshore businesses as administrators look to refocus and rebuild the struggling company.
British-based e-commerce operation Surfdome will be sold to another British company for $11.8 million, including an upfront cash payment and a deferred consideration – reported to be a fraction of the $45 million paid by SurfStitch three years ago.
In an announcement to the ASX yesterday morning, administrators John Park, Quentin Olde and Joseph Hansell of FTI Consulting, confirmed British company internet Fusion would purchase Surfdome, the leading sports online retailer in the UK.
‘The sale of Surfdome ... continues with the execution of the restructuring plan for the group to sell down noncore assets to focus on the profitable and successful SurfStitch Australian business,” Mr Olde said.
The company was placed into administration in August and was seeking buyers to invest and restructure the failed business.
Companies including fellow Gold Coast product Billabong have been named as potential suitors, while forensic accountant and SurfStitch non-executive director Abigail Cheadle has confirmed she has submitted a restructuring proposal.
This month’s sale follows those last month of the Magicseaweed and Metcentral surfing content sites for an undisclosed sum, marking a retreat by SurfStitch from the media and online publishing sector.
Last month SurfStitch administrators also sold Rollingyouth, the owner of Stab Magazine, back to its cofounders for a small amount of cash after paying more than $6 million for the publisher in 2015.
SurfStitch has been caught in rough waters and decided to dump its Surfdome business.