Christine Drews Sieger
Australian sports retailer Stateside Sport has entered voluntary administration as rising costs and weaker consumer spending continue to pressure the retail sector.
One of Australia’s largest sports retail chains, Stateside Sport, has voluntarily entered administration. The voluntary administration is being seen as an attempt to save the company, 9News reports.
Antony Resnick and Henry Kwok from advisory firm DVT McLeods were appointed as administrators on May 22.
They are currently reviewing the company’s 31 stores following several financial difficulties.
The company was founded in 2017 and is particularly well known among younger consumers for selling NBA jerseys and NFL merchandise.
Uncertain future
The newly appointed administrators currently point to rising costs, lower consumer spending, and tougher competition as the reasons behind the company’s declining financial situation.
However, daily operations in stores and online will continue.
“While we will be focusing on changes in its operations and retail footprint as a matter of urgency, for now it is business as usual and products will continue to be sold in-store and online,” administrator Antony Resnick said.
Despite this, the long-term survival of the stores remains unclear, 9News reports.
Pressure on the retail sector
The recovery plan over the coming period will therefore be crucial to the chain’s future.
Stateside Sport is not alone in feeling pressure within the retail industry. According to CBS News, several major retail chains have struggled in recent years with rising costs, lower consumer spending, and changing consumer habits.
The sports and fashion industries are among the sectors where consumers are quickest to cut back on purchases.
Chains such as Party City, Big Lots, and Forever 21 have either closed stores or filed for bankruptcy protection as a result of the economic downturn.
Sources: 9News, CBS News
