KordaMentha Restructuring has commenced a sale process for Australian sunglasses brand Soda Shades.
Soda Shades directors Luke Young and Georgie Saggers appointed administrators to the business on April 12, 2022.
According to the first meeting of creditors, the appointment was made after ongoing issues with supply and investment.
The circumstances dated back to August 2021, when Young and Saggers explored opportunities to work with the brand’s supplier Joshua Matta of Imatta.
In October and November 2021, various documents comprising of a loan agreement, general security agreement, shareholders agreement and share subscription agreement, were executed.
By mid-March 2022, Matta noted the business was not performing as anticipated and suggested the directors find a buyer for his investment which purportedly sat at approximately $2.25m.
Matta indicated that he was happy to support Soda Shades with production, offices and warehousing arrangements until Easter 2022 while the directors found a buyer for the shares.
From about late March 2022, there appeared to have been a significant deterioration of the relationship between Imatta and Soda.
Administrators were appointed soon after a demand to recover amounts loaned to Soda Shades was issued.
Soda Shades has nearly 50,000 followers on Instagram and ships products both domestically and internationally, with the average pair retailing at $95.