David Jones has severed ties with Sass & Bide after rival department store Myer acquired a stake in the brand.
David Jones will no longer carry the Sass & Bide label after the autumn/winter 2011 season, marking the end of a 10 year supply arrangement.
As reported on www.ragtrader.com.au, Myer today announced it had acquired a 65 per cent stake in the label. David Jones now claims it knocked back a similar investment offer.
David Jones chief executive Paul Zahra attributed this knock-back to a “lack of growth” in Sass & Bide sales and gross profit.
“We did the calculations and could not justify the price paid for the business, particularly given the lack of growth in our Sass & Bide business.
“It was a matter of financial
discipline for us and ultimately this investment was not in the
interests of our shareholders.
“We carefully reviewed our
brand portfolio last year and is was clear that the sales from Sass &
Bide’s exit will be readily replaced with the many other brands in
our portfolio.”