Fusion Retail Brands secured the future of several iconic Australian names including Diana Ferrari, Jag, Mathers, Williams and Colorado after owners - the Colorado Group - plummeted into receivership last year owing $430 million. Fusion Retail Brands is owned by the main secured creditors of the Colorado Group including Nomura; Anchorage Capital Partners; NAB; and Ice Canyon.
The group, which claims it has reduced debt by more than $300 million through a partial debt for equity swap, took over in September and has only now revealed its future plans. A refresh and refurbishment program will be implemented when leases are assigned or renewed, and Fusion has also negotiated an agreement for Myer to sell its Colorado footwear from Spring this year.
The group is in the process of hunting for a new CEO as Kevin Roberts plans to leave at the end of the month, and has appointed Susan Oliver as chairperson - in addition to a wider management shake-up.
Oliver, who has more than 16 years experience as a company director and was once on the board of the Just Group, said the company has big plans over the next few years and has so far managed to cut its debt from $430 million to $90m.
“We now have a viable capital structure and our owners have capitalised us to be able to perform the turnaround,” Oliver said. “We have budgeted for six new stores per year, subject to achieving commercially viable rents, and have established online stores for each brand, which will be a key driver of growth.”
Jag will be repositioned as a denim-inspired ‘urban brand with attitude’, and Oliver said they plan on capturing a greater share of the comfort footwear segment in relation to Mathers. Four distinct product segments of Diana Ferrari - ‘dress’, ‘super soft’, ‘signature’ and the orthotic-friendly ‘multi-fit’ footwear ranges will also be the key drivers of growth.
“We are placing customers and stores at the centre of everything we do to enhance the customer experience,” Oliver said.
She said a key change in the direction is attributed to the appointment of three ‘highly regarded’ state retail operations managers for New South Wales, Queensland and the southern states.
These include former national retail operation manager for the Oroton Group, Nadia Kemister, and ex-Sportsgirl national manager and former Just Jeans area manager, Tania Roberts.
Oliver said annual head office overheads will reduce by almost $5 million per year due to consolidating the Brisbane and Melbourne offices under one roof, in Hawthorn, this month. This will save $2 million in rent and a $2.9 million salary saving. IT infrastructure outsourcing and IT contract renegotiation will save $1 million per year and the group is now in the process of negotiating reductions in store rents.
Colorado had more than 430 stores across Australia and New Zealand, but after closing all unprofitable stores it emerged from receivership as Fusion with 280 stores and 2,200 employees.
