Brand Directions, the new owner of womenswear chain Brown Sugar, has revealed plans to double, or triple, the brand’s store count in Australia, following its fall into administration last year.
Brown Sugar, established in 1975, went into voluntary administration in August 2011 before it was rescued and bought by Brand Directions in September.
Brand Directions managing director David Mullen said that, while the first four months following the acquisition of Brown Sugar were, “all about continuity”, the company is now focused on bringing the brand back to its former glory and expanding its retail network.
Mullen also confirmed that Brown Sugar will also soon be part of a larger brand stable, with Brand Directions actively on the prowl for further fashion company acquisitions.
“The business needs repositioning, to restore the DNA of the brand. That’s been lost in recent times, so it’s back to basics while we rebuild its strengths,” he said.
“However, going forward, we see the potential for Brown Sugar to grow current store numbers two or threefold, along with a strong online presence. This will be part of a broader portfolio of three to five brands, so we are actively seeking further acquisitions now.”
Despite its recent turbulent history, Mullen said the Brown Sugar brand is also performing well to date, with a significant lift in margins and improved cost ratios which are, “ahead of expectations on both counts”.
The strong sales results have helped to hasten the recovery of the Brown Sugar business and will also fuel the brand’s future ventures into new markets.
“We’ve been working with a couple of prominent international retailers, as the interest in our market grows. But beyond that, there are also opportunities for our brands internationally, so we are developing our plans for roll out in the near future,” Mullen said.
Brand Directions currently operates a Brown Sugar online store, along with 20 outlets for the label in Australia, including the most recent addition, which launched at Garden City in Western Australia in February. The group has also designed a new fit-out for Brown Sugar stores, which is due to be rolled out within the first half of this year.
Daniela Aroche