Apparel brand OnTheGo Sports enters administration

Canberra-based apparel brand OnTheGo Sports has entered administration with its founder Mick Spencer blaming the Coronavirus pandemic for its situation.

A notice on 2nd June advised that administrators had been appointed to three OnTheGo (OTG) companies with reports suggesting it owed over $6 million to creditors.

Founder and Chief Executive Spencer has suggested the move is a step to secure the company’s future, advising “OTG is still an actively trading company, our factory in Canberra is still open, our staff are still employed.

“We have debt due to release in 12 months and we believe it is in the best interests of shareholders, creditors and staff that an administrator be appointed to restructure, realise the assets, and run the business, and proactively do this now, to secure the best outcome for company’s future.”

Founded in 2010, Spencer’s business was built on supplying short-run sports apparel to community sport organisations and clubs and more recently had enabled customers to design and order sports clothing and other accessories both online and via kiosks in retail locations.

The model proved successful, providing customer products to over a million people in over 3,000 locations globally, including partnerships with Netball Australia and Hockey Australia.

Spencer also enjoyed a high media profile, appearing on Kochie’s Business Builders and Channel Ten’s Shark Tank.

His 2016 appearance on Shark Tank saw him secure a $600,000 investment - double what he was seeking - although the deal never passed the due diligence stage.

OTG also supported a webstore for the Wesfarmers-owned Officeworks stores, enabling small business customers to design and print apparel and merchandise. In 2018, Wesfarmers took a 5% stake in the business.

According to the Australian Financial Review, administrators are pursuing Wesfarmers for more than $500,000 allegedly owed, relating to their joint venture partnership.

However, Westfarmers is reported to be disputing that any amount is owed.

At this time, administrators Slaven Torline are keeping the company operating while looking to find a buyer.

Slaven Torline partner Aaron Torline advised “we are seeking expressions of interest to sell the business as a going concern, most likely to an interested party in a similar industry.

“Liquidation is a last resort.”

The OTG entities in administration are ONTHEGO Group Pty Ltd, OTG Labs Pty Ltd and OTG Regional Pty Ltd.

Image: OnTheGo founder and Chief Executive Mick Spencer on Channel Ten’s Shark Tank in 2016. Video shows Spencer on Kochie’s Business Builders in 2017.

Article updated 10th September 2021. Despite being quoted commenting on the state of ONTHEGO companies in July, Australasian Leisure Management understands Spencer stepdown as a Director of the business in May 2021.