In the latest chapter in its tumultuous history, the group called in administrators for its listed and holding companies on Thursday, citing the "adverse impact" mounting legal action was having on its cash flow position.

"These challenges each bring high levels of uncertainty and material costs that are entirely outside the control of the group operational businesses," SurfStitch said in a statement to the ASX.

SurfStitch's operating businesses - the online stores SurfStitch, SurfDome and Swell, surf report site Magic Seaweed, and the magazine Stab - are not subject to the administration and will trade as usual. Customers would continue to receive orders, and suppliers and employees would be paid as normal, administrator FTI Consulting said.

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SurfStitch chairman Sam Weiss said appointing administrators was necessary as it sought to remove uncertainties and put the company on a "sustainable footing" without affecting its businesses' normal operations.

FTI Consulting's John Park said the legal proceedings against SurfStitch would be stayed following its appointment, giving the group "breathing space" to focus on trading during the peak December period.

Mr Park said administrators would investigate the potential to recapitalise SurfStitch to try to secure a better outcome for stakeholders. Mr Weiss said SurfStitch would look at whether entering a deed of company arrangement with its creditors was possible.

The surfwear company has been in turmoil since Justin Cameron, its co-founder and CEO, unexpectedly quit the business in March last year to weigh up a privatisation bid.

SurfStitch shares were suspended in late May as the company grappled with the implications of a $100 million class action launched by aggrieved shareholders. Law firm Quinn Emanuel is running the class action on behalf of shareholders whose investments were largely wiped out by the dramatic drop in SurfStitch's share price following a series of earnings downgrades last year.

In June, law firm Gadens hit SurfStitch with its own class action over its disclosures before and after its float.

Meanwhile, Coastalwatch, a surf forecasting website that owns a 10 per cent stake in SurfStitch, has taken legal action against the company over content sharing deals. The Australian Securities and Investments Commission is investigating SurfStitch's disclosures in connection with the content sharing deals.

SurfStitch listed at $1 in late 2014 and was trading at a record high of $2.09 in November 2015. It shares had fallen 90 per cent to 22?? by June 2016 following three profit warnings. The stock closed at 6.8?? before being suspended.

Mike Sonand became CEO in June with a promise to restore profitability this year and improve returns for long-suffering shareholders.

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