The STAX Story: Understanding Receivership Beyond the Headlines

The recent appointment of receivers and managers to the Australian activewear brand known as “STAX” has placed receivership back in the spotlight. While the announcement has generated significant public attention, many business owners, directors, creditors and customers are unfamiliar with what receivership actually means (and what happens next).

On around 24 June 2026, Joseph Hansell and Asjadi Hone of FTI Consulting (the “Receivers”) were appointed as Receivers and Managers to STAX. Pty Ltd ACN 622 114 952, Stax. GPT Pty Ltd ACN 674 817 611, Stax. Retail Pty Ltd ACN 664 876 993 and Stax. Westfield Pty Ltd ACN 678 397 218 (collectively, the “STAX Group”). According to the current website page of the STAX Group, the Receivers are undertaking an urgent assessment of the business and its operations and, whilst that occurs, the Pitt Street and Liverpool Westfield stores are closed, and the online store will not be accepting new orders.

What is a receiver?

A receiver is an insolvency practitioner appointed by a secured creditor to take control of some or all of a company’s property for the benefit of the secured creditor. Unlike a liquidator, whose primary role is to wind up a company for the benefit of all creditors, a receiver’s principal duty is to realise assets secured in favour of the appointing creditor and repay the secured debt.

Receivers are commonly appointed by banks and other secured lenders after a borrower defaults under a loan agreement. Their appointment is typically made under the terms of a security agreement rather than by the Court, although the Court also has power to appoint receivers in appropriate circumstances.

When can a receiver be appointed?

Most receivers are appointed after a secured creditor enforces its security interest because a borrower has failed to meet its obligations under a secured loan or finance agreement. The appointment usually follows the creditor determining that taking control of secured assets is necessary to protect its position and maximise recoveries.

The legal framework

Receivership is primarily governed by Part 5.2 of the Corporations Act 2001 (Cth) (“Act”).

Section 90 of the Act provides generally that a receiver is also a manager if they manage, or under the terms of their appointment have the power to manage, the affairs of the company.

The Act further provides receivers with statutory powers to enter into possession of property and deal with assets, while preserving any broader powers granted under the security agreement (section 420). However, when exercising a power of sale, a receiver is required under section 420A to:

• take all reasonable care to sell property for not less than its market value; or
• where there is no market value, obtain the best price reasonably obtainable.

This provision is particularly significant because it protects both secured creditors and the company by ensuring assets are not sold for less than they are reasonably worth.

The Act also imposes reporting obligations on receivers. For example, under section 422 of the Act, a receiver must lodge reports with the Australian Securities and Investments Commission (“ASIC”) regarding misconduct where certain matters come to their attention during the administration.

What does a receiver actually do?

Once appointed, a receiver assumes control over the secured assets and will usually undertake an urgent review of the company’s financial position.

Depending on the circumstances, the receiver may:

• continue trading the business;
• take control of bank accounts and cash flow;
• secure and preserve business assets;
• collect debts owed to the company;
• negotiate with customers, suppliers and employees;
• sell individual assets or the business as a going concern; and
• distribute sale proceeds to the secured creditor in accordance with the security arrangements.

A receiver’s objective is generally to maximise the value of the secured assets while repaying the appointing creditor.

Does receivership mean the business closes?

Not necessarily. One of the most common misconceptions is that receivership automatically means a business has ceased operating. In many cases however, receivers continue to trade the business while exploring restructuring options or conducting a sale process. Continuing operations can preserve goodwill, maintain customer confidence and increase the value of the business for potential purchasers.

In the STAX Group appointment, the Receivers have noted on the STAX Group website that they are working with suppliers and key stakeholders to determine “whether and how trading can resume.”

How does receivership differ from voluntary administration and liquidation?

Receivership focuses on recovering money for the secured creditor through the realisation of secured assets.

Voluntary administration seeks to determine whether the company or its business can be rescued through a restructuring or deed of company arrangement.

Liquidation generally marks the end of the company’s existence, with assets realised and distributed among creditors before the company is deregistered.

It is possible for more than one of these processes to occur simultaneously. For example, a company may enter voluntary administration while receivers are appointed over secured assets, or receivership may later be followed by liquidation.

As the STAX Group receivership progresses, further information is likely to emerge regarding the company’s financial position and the options available for its future.