Bondi-based fashion brand Tuchuzy has racked up $5.26 million in estimated liabilities in the lead-up to its second collapse this year.
This is according to the latest administrators’ report by dVT Group, obtained by Ragtrader via ASIC, with appointed administrators being Antony Resnick and Henry Kwok.
According to the report, Tuchuzy's director claimed that Australian Taxation Office debt that accrued interest, increased interest rates, cost-of-living and reduced trading terms from suppliers were the key factors leading to the brand's downfall.
The administrators’ preliminary investigations indicated other factors including poor management, insufficient cashflow, under capitalisation and significant accumulated trading losses.
Of the $5.2 million in debts, $422,552 is owed to employees, with $3.32 million owed to ordinary unsecured creditors – such as suppliers – and $1.51 million is owed to related party creditors.
The brand's total employees at the entering of voluntary administration was around 13.
Detailed amounts of debts owed were not noted, however some of the key listed secured creditors include Bassike, Globe International, Lonely Hearts Club, and Sunshades Eyewear.
Other details in the administrators’ report show that wages were the biggest business cost for Tuchuzy, which grew to $1.87 million in the latest financial year to February 13 this year – evenly split between head office and its retail store.
In FY24, Tuchuzy’s total wages were $1.16 million.
Other high business costs included shop rent, which rose to $541,824 in FY25 ending February 13. In FY24, this was $380,098, and $265,663 in FY23.
Computer software and support was another rising expense, lifting from $181,531 in FY23 to $328,651 in FY25 (ending February 13), alongside similar lifts in social media marketing.
Meanwhile, Tuchuzy had been dropping its advertising spend over the last few years, from $243,496 in FY22 to $108,390 in FY25 (ending February 13).
All up, total expenses for Tuchuzy lifted dramatically in FY25 (ending February 13), from $2.96 million in the prior financial year to $4.18 million this year.
These rising expenses were matched with gradually falling sales over the last few years, matched with million-dollar losses, with the losses softening in FY24 and FY25.
In FY22, Tuchuzy reported a total sales of $6.86 million, with a loss of $1.3 million. The cost of goods sold in FY22 was $4.34 million, with expenses at $3.97 million.
In FY24, the fashion brand’s total sales slipped to $6.25 million, with COGS down to $3.46 million. However, expenses remained relatively elevated at $3.86 million.
For FY25 to February 13, total sales were $2.9 million, with COGS at $1.59 million. Total expenses for the year was at $1.98 million, adding to a total loss of $619,061.
Since the appointment of dVT administrators – from February 13 to March 10 – Tuchuzy’s total sales were $206,750, with two-thirds of this originating from its retail store in Bondi.
Alongside rising business costs and subdued consumer spending, the administrators’ also uncovered that 50 per cent of the $1.3 million worth of stock on-hand at Tuchuzy is more than 180 days old.
“We are currently selling the stock in the ordinary course of business at this stage, a majority of which we have had to discount significantly, due to the age of the stock,” the administrators’ wrote. “The current sale value of the remainder of the stock (factoring in relatively aggressive discounting), is in the vicinity of c.$500,000 as at 10 March 2025.
“We are unable to provide an indication on the ultimate level of stock that will be realised. We do however note that realisations made (if any) from this class of the asset, will be contributed to the DOCA fund for the benefit of creditors.”
DOCA is a Deed of Company Arrangement, which is a deal between a company and its creditors.
“In addition to the above, the Director advised that the Company [Tuchuzy] has stock located in China which is ready to be shipped with an estimated realisable of c. $242,000. We are currently in discussions with this vendor for the release of this stock to make it available for the benefit of the creditors of the Company.
“At this stage, it seems critical that we receive this stock to enable us to continue operating the Company’s business with a view to preserve its goodwill for the sale of business campaign currently on foot by us.
“Given we are trading the business operations, the stock on hand is being sold in the ordinary course of business at this stage. To this end, we have also rolled out an appropriately aggressive markdown stock sale campaign, with the strategic input of the Tuchuzy team, with a view to achieving the best possible outcome in a commercial manner.”
The administrators confirmed that they are in the process of selling the business as a going concern.
“Should a going concern sale not be achieved, we will have no alternative but to consider selling all the stock of the Company separately. We will provide creditors with further updates in due course in relation to the ultimate level of recovery made from this class of asset.”
The future of Tuchuzy will be decided by creditors at an upcoming creditors’ meeting on March 20.