Brand Collective revives three collapsed Australian retailers in one deal
What's the deal? Brand CollectiveDealroom has a profile for this one. Try Dealroom →, the Larry Kestelman-owned retail group, has acquired three Australian fashion and lifestyle retailers: Glue StoreDealroom has a profile for this one. Try Dealroom →, The DOMDealroom has a profile for this one. Try Dealroom → and Running BareDealroom has a profile for this one. Try Dealroom →. The group called the move a "significant step forward" in its growth strategy, with plans to rebuild all three through digital investment. Financial terms were not disclosed.
Why now? All three retailers collapsed or shut down over the past year. Glue Store was closed by former owner Accent GroupDealroom has a profile for this one. Try Dealroom → in June following an $8.4 million loss; The DOM, an online factory outlet, shut in April; and activewear brand Running Bare spent six months out of business before the deal.
What's the endgame? Brand Collective plans to keep Glue Store focused on youth fashion while expanding its store presence and improving its digital experience. It intends to rebuild The DOM into a broader fashion, footwear and lifestyle destination, and to preserve Running Bare's "distinct identity" while investing in its digital operations.
Running Bare, founded in 1983, is a longstanding Sydney activewear label. Relaunch timelines for all three remain unclear, and the company has not said how many physical stores Glue Store will operate.
Who's the buyer? Brand Collective holds more than 30 brands, including international names such as SuperdryDealroom has a profile for this one. Try Dealroom →, ReebokDealroom has a profile for this one. Try Dealroom →, Champion, Clarks and Canada Goose, alongside Australian labels Review, Black Pepper, Volley and Julius Marlow.
"Brand Collective has considerable experience in taking brands to new levels of success, and we see enormous potential across all three," chief executive David Thomas told Inside Retail.
The signal: The deals land as Australia's retail sector grapples with rising operating costs and shifting consumer spending. Cue Clothing CoDealroom has a profile for this one. Try Dealroom →, a near-six-decade-old fashion retailer, entered receivership and voluntary administration in September — a sign of the pressures Brand Collective is betting it can navigate through consolidation.
Read more: 7news.com.au
Image credit: Generated with Gemini
