Surfwear brand Headworx has fallen into administration after its investors pulled the plug.
The business was hit by tough trading and a poor surfing season this summer. Its shareholders, including brand licence firm The Licensing Company, which invested in the business in April and set up a joint venture to exploit its international potential, have decided not to put any more cash into Headworx, forcing it into administration.
The brand has ceased trading and administrators Begbies Traynor have put the intellectual property rights for the brand up for sale, along with £330,000 worth of stock. A source close to the deal said the administrators were in the process of deciding whether £125,000 of outstanding orders could be honoured. Headworx has about 80 stockists in the UK.
A source close to the company said: “By the end of what was a poor summer for surfing, it was apparent that the business was not making the expected progress in a tough economic climate. The shareholders of Headworx decided not to invest further funds, which regrettably resulted in the business being placed into administration.”
Headworx was founded in Australia in 1976 by surfers and artists Murray Bourton and Keith Halford. The brand produced surf and lifestyle activewear including T-shirts, hoodies, shorts, backpacks and boardshorts.