SurfStitch Group Limited – Possible Class Action, page-41

Simply look at what they bought in past 9 months. They were businesses that, although 'surf' related, were very different to the Online model Stitch was founded on and floated on. Look what they paid for them. Probably $10M -$15M too much for SHI which was sold to them by Mac Bank which is where the resigned CEO Justin Cameron came from, from what I heard. Worth investigating by Gadens??. Then Stab Mag probably paid double the value and so it goes.

Ask the surf industry what they think of Surfstitch (read comments on various industry forums) and they are on the nose big time from what I am reading. Word is that a bunch of retailers they sell surf accessory products to have blackballed them, refusing to purchase from SHI and going to competitors.

Too much hubris by cashed up founders playing with shareholders funds and thinking they can manage businesses that where manufacturers and had a normal retail 'door' and wholesale business model, shows why this has happened and why it will continue to fail without major clean up.