MELBOURNE: Brendan Santamaria will stay on with the new owners of Mercury Brands, a month after the wholesale group collapsed following consecutive financial year losses.
The former chief executive of Mercury Brands, which posted an $11.4 million loss for the 2009 financial year, is among 25 staff members to be retained under new owner Australian Horizons Trading, which purchased the group out of receivership earlier this month.
Australian Horizons Trading chief executive Jeff Moss said Santamaria will head up the integration of Mercury Brands’ labels into the business. While his future role and title is yet to be confirmed, it is understood Santamaria will work within the brands and licensing area.
Moss said 40 per cent of employees from Mercury Brands have been retained as part of the purchase, with entitlements for non-transferred staff to be fully paid.
Other key personnel involved with the new-look Mercury Brands include David Rosenberg as brands and licensing director and Jonathan Kadish as chief financial officer.
Rosenberg has over 20 years’ experience in the apparel industry – significantly with his family’s dress manufacturing business in the United States – while Kadish was employed by Australian Horizons before Moss bought the apparel business from Funtastic in August.
Moss declined to reveal the amount paid for his latest acquisition, but said 20 labels across men’s, women’s and children’s apparel were part of the Mercury Brands agreement.
In addition to an upfront payment for the group, his company will also pay royalties to Mercury Brands Limited for up to 10 years. This comprises a five per cent royalty on group-owned labels and two per cent on third-party licences. Moss said “big labels” were behind his decision to purchase the group.
“Particularly No Fear, Crusty Demons, French Kitty and Purr – and of course Rochford Australia,” he said.
Other labels include Kangol, Roar, Itsu, Voodoo Dolls, Contempo, Billiecart, Paperdolls, Milly, Leroy, Jimmie Jams, Playground and Nuggets.
A full brand review will be undertaken by Australian Horizons Trading, with changes to be announced later.
Moss said the key benefits would be having a team of fashion industry experts at the helm and increased financial support. More efficient delivery of product is also on the cards.
In addition to buying Australian Horizons in August, Moss also purchased Funtastic Footwear under Correll Brands, a joint venture between Moss, David Rosenberg and Corell Holdings, in late June.
Moss said he had no immediate plans for more acquisitions, but would always be on the look-out.
He established the Pretty Girl Fashion Group in 1989 and Tigerlily Swimwear in 1999. He is also a previous owner of Rockmans, Wombat and Table Eight.
Melinda Oliver