THE failed online retailer SurfStitch (ASX: SRF) has sold off another asset with its UK-based Surfdome business picked up by adventure retailer Internet Fusion for around $12 million.
Surfdome is a leading board sports online retailer based in the UK, delivering to surf, skate and snow customers across Europe. Internet Fusion is a UK-based sports and adventure retailer, servicing a number of distinct markets with specialist websites through its e-commerce platform.
"The sale of Surfdome to a synergistic buyer, Internet Fusion, is a good outcome for the ongoing growth of the Surfdome business and continues with the execution of the restructuring plan for the group to sell down non-core assets to focus on the profitable and successful SurfStitch Australian business," says Quentin Olde, one of the joint administrators.
Surfstitch entered voluntary administration in August and its administrators are trying to restructure the company to try and save the embattled retailer.
The administrators are trying to prepare the company for relisting on the ASX and a key part of the strategy is to sell off its overseas assets which were bought during a $50 million spend on acquisitions after a string of capital raisings.
Last month, surfing content sites Magicseaweed and Metcentral were sold off along with publishing company Rollingyouth.
Surfstitch went into voluntary administration after the impact of a series of legal battles took their toll on the online retailer and ASX listed company.
The company was reluctant to enlist administrators FTI Consulting, considering it is still defending two class action lawsuits brought by SurfStitch shareholders.
SurfStitch entered the ASX as a market favourite in 2014, however it has since suffered a spectacular fall from grace which has wiped almost 93 per cent off its total market value.
The company downgraded its earnings three times, largely because of a dispute with surf technology group Coastalwatch and Crown Financial over the licencing deals which fell through, and this wiped around $20 million off revenues.
Business News Australia
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