He said working with Alquemie Group has been “disappointing and painful”.

Payment delays

Tomy denies there were any issues with the order but says he offered to settle for 95 per cent of the total amount owed to him as a compromise, in order to receive payment.

After months of scattered communication with the owners of SurfStitch, Tomy says he never saw any of the money owed to him.

More Alquemie suppliers speak out

A former supplier for SurfStitch, who also asked not to be identified, said: “They were bouncing me from person to person in their business. Just red-taping me.”

SurfStitch was also the subject of court action by the outdoor apparel company, Burton, and the beach accessories company, SunnyLife, for outstanding debts.

Mosaic Brands — a pattern of payment delays?

The complaints from the suppliers of Mosaic Brands are separate to the new claims against Alquemie Group. But in both cases suppliers allege a pattern of delayed payments which they say is causing harm to businesses down the retailers’ various supply chains, both in Australia and overseas.

“They kept making excuses”

As far as Dateline is aware, Alquemie Group has not been investigated or faced any legal action in relation to any of these claims.

Tomy, who once employed 120 workers, says he has now been forced to reduce his workforce to less than 30 people. Source: SBS

Australian retailers have faced challenging circumstances in recent years as cost-of-living pressures have made customers more conservative with spending and driven many retail businesses into administration or receivership.

In a response to our questions regarding delayed payments to suppliers, an Alquemie Group spokesperson said, “a very small number of suppliers have seen the current environment as an opportunity to pursue long-standing commercial disputes through the media with claims that are untested, unsubstantiated or simply untrue. We do not comment on individual commercial relationships but Alquemie has strong and long-standing partnerships with over 400 local and global suppliers and external partners”.

A quiet sale

On the day SurfStitch was sold, documents were lodged with ASIC notifying of a change in the company’s directors — with retail specialist Andrew Shub appointed in the place of Richard Facioni and financial leader Felicity Veivers.

They also stated “Alquemie Group’s approach of strategically focusing on larger scale brands is showing positive progress with several new stores opening in the coming six months. Again those store openings would not be possible without the support and partnership of landlords, suppliers and most importantly of all — our customers”.

Still grateful

“It’s really painful – we are still struggling and suffering, like being pricked by needles day after day.”