Sur­fStitch bails out of Surf­dome scene

The Gold Coast Bulletin - - NEWS - KATH­LEEN SKENE kath­leen.skene@news.com.au

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.

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