The Australian activewear brands market, once a vibrant hub of innovation and growth, is facing a challenging period, with several brands succumbing to the pressures of a highly competitive and evolving retail landscape. The recent administration of Exoticathletica, a popular Queensland-based activewear brand, owing millions to creditors and employees, serves as a stark reminder of the underlying vulnerabilities in this sector. This isn’t an isolated incident but rather a symptom of broader issues impacting fashion and activewear retailers across Australia.
The Rise and Fall of Exoticathletica
Founded in 2014 by Leilani Chandler, Exoticathletica carved a niche with its brightly colored and printed athleisure wear. The brand experienced a meteoric rise, particularly during the pandemic when comfort wear soared in demand. Reports indicate the company made $7 million in one year from a single crop top design, selling over 140,000 units. However, by 2025, the picture had drastically changed, with the brand collapsing under $13 million in debts, including significant amounts owed to the Australian Tax Office, Commonwealth Bank, and various suppliers. The sudden flash sales launched by administrators to recover funds highlight the rapid deterioration of its financial health.
A Confluence of Pressures: Why Brands Are Struggling
Exoticathletica’s downfall, much like other Australian fashion casualties, can be attributed to a confluence of systemic challenges:
Rising Operating Costs: Australian retailers, including activewear brands, face soaring operational expenses. High rental costs for physical stores are a significant burden, especially as consumer shopping habits shift away from brick-and-mortar. Manufacturing costs, supply chain complexities, and fluctuating transport rates further erode profit margins, particularly for brands relying on overseas production.
Intensifying Competition: The market is saturated with both local and international players. Australian brands struggle to compete with the sheer buying power, vast product range, and rapid turnaround times offered by global fast-fashion giants and online-only retailers like Shein, H&M, and Zara. These international behemoths can quickly adapt designs and stock them, often within weeks, while local brands might take months.
Shifting Consumer Behavior and “Fast Fashion Fatigue”: There’s a growing global trend towards more conscious consumption. Consumers are increasingly scrutinizing the environmental and ethical impact of their purchases. Fast fashion, known for its excessive waste and questionable labor practices, is falling out of favor. Shoppers are prioritizing higher-quality, durable, and sustainable activewear, often willing to pay more for brands that align with their values. Many Australian brands, even those with perceived higher quality like some mentioned in consumer rants, are being criticized for declining product longevity.
Digital Transformation Lag: While the pandemic accelerated the shift to e-commerce, some traditional Australian retailers were slow to fully embrace digital strategies. Brands that failed to invest adequately in robust online platforms, engaging social media presence, and effective digital marketing have found it hard to compete with nimble online-native businesses that excel in this space.
Economic Headwinds: The rising cost of living in Australia has led to reduced discretionary spending. Activewear, while popular, is still a discretionary purchase. Consumers are becoming more cautious with their budgets, leading to a decline in frequent, low-cost purchases that many fashion retailers rely on.
Lessons from Past Collapses
Exoticathletica is not the first. In recent years, other notable Australian activewear and sportswear brands like Skins have faced bankruptcy (Skins filed for bankruptcy in a Swiss court in 2019, though the brand name was later acquired). Larger retail groups with activewear components, such as Liberated Brands (which licensed and operated brands like Billabong and RVCA in Australia and other regions), also filed for Chapter 11 bankruptcy in early 2025 due to rapid expansion, economic pressures, and licensing challenges. Even established local brands like Lorna Jane, while not bankrupt globally, filed for Chapter 11 in the US in 2024 to exit unprofitable store leases, highlighting the struggles of brick-and-mortar retail and the shift to online.
These collapses serve as critical lessons for the broader Australian activewear industry. Survival in this cutthroat market demands more than just stylish designs. It requires agile business models, strong digital capabilities, a genuine commitment to sustainability, meticulous financial management, and a deep understanding of evolving consumer values. Brands that can adapt to these multifaceted pressures are the ones most likely to stitch together a sustainable future in the Australian activewear landscape.