Australian fashion label Shakuhachi became a hit by projecting an alluring image of carefree bohemian beach chic. Carried at retail outlets in the Land Down Under as well as numerous international e-commerce sites, it was hugely popular with trendy consumers – until their orders started coming in late, and then not at all, sparking a backlash.
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Unbeknownst to its customers at the time, the company had run out of money to pay its debts and, in May 2015, was placed under voluntary administration for liquidation.
The Instagram of Shakuhachi’s founder and former director, Jessica White, continued to show her living the glamorous high life in Bali.
Back in Australia, reports say 80 of the company’s creditors, including manufacturers and modeling agencies, haven’t been paid.
White reportedly left Australia still owing almost $1 million dollars as well as facing investigation for continuing operations (ie taking customer orders and money) after her company had become insolvent.
The liquidator assigned to her company, Andrew Spring, said the books don’t add up that a significant amount of the companies funds are unaccounted for.
“We’ve been able to identify somewhere in the vicinity of $600,000 of funds which appear to be taken out for Jessica White’s personal benefit, or for a related company controlled by Jessica White,” Spring told Australian news program A Current Affair, adding that he also wanted to know how White was funding her lifestyle in Bali and when she was planning to return to Australia to face her creditors.
A Current Affair tracked White down in Bali and confronted her at a public restaurant where she was sitting with others. As they say, she all smiles at first, until they bring up the money…
… at which point White retreats to the upstairs bathroom while the TV news crew chases after her.
To watch the rest of the segment you can go to go to A Current Affair’s website (though it’s only viewable from within Australia). Among other things noted in the show’s investigation is that there are still several Shakuhachi outlets operating in Bali and employees identified White as the current owner.
They also included this statement from White regarding the show’s allegations:
At present, my only involvement with Shakuhachi is consulting and advising on design. Since Shakuhachi was acquired by Loft HK Limited, I have not been involved in the day to day running of the business or any of the retail sites in either Australia or Indonesia. The online store is run exclusively by Loft HK Limited and I have no involvement with orders, purchasing or the fulfilment of any goods. I am not receiving any funds from the sale of Shakuhachi clothing either in-store or online. My understanding is that Loft HK Limited are working closely with all consumers and Fair Trading to resolve any complaints, provide a refund and/or fulfil all outstanding orders.
