NATIONAL: When the domestic licence for international denim brand Diesel changes hands, it will mark the end of an era when deals were sealed with a simple handshake.
At the time of press, business partners Theo Onisforou and Lisa Keighery were still considering expressions of interest in the licence, which they acquired after the passing of ragtrader Mark Keighery in 2008.
Keighery introduced Diesel to the Australian market in the 1980s, following a chance meeting with its founder, Renzo Rosso, in New York. Onisforou came on board as a private investor 18 years ago but admitted it was Keighery who ultimately steered the brand towards success. Diesel currently has four stores and 50 wholesale customers across Australia, including streetwear chain Glue and department store David Jones.
However, increased competition in the Australian market, coupled with an unsuccessful strategy to slash price points by up to 20 per cent for spring/summer 2010, requires a new face and fresh plan of attack, Onisforou told Ragtrader.
“For 18 years I was happy being the silent partner but circumstances changed,” he said. “No one ran the business like Mark – Mark knew the industry inside out. This sale will not be about price; we want someone to look after Diesel and take it to the next level.”
Keighery was reportedly the first ragtrader to secure an international licence with Diesel, after sharing a cab with the then little-known Russo to New York’s JFK Airport.
Onisforou said this was the start of a long professional relationship between the two men, with the brand launching in Australia through Keighery’s chain of Marcs stores.
“It was a very long cab rank and they were both headed to the airport, so they thought it would be more practical to share a taxi,” Onisforou recalled. “There was never a written agreement after that, business was done with a handshake. It was good for both parties.”
After www.ragtrader.com.au broke news of the impending sale on April 20, the publication was flooded with stories from industry power players who had worked with Keighery and Diesel Australia. Fashion PR giant Roxy Jacenko, whose clients have included Diana Ferrari, Kenzo, Mooks, Converse, Ed Hardy and Pierre Fontaine, said she worked with Keighery and Onisforou for four years at the start of her career.
“Unbelievable about the sale of Diesel,” she said. “It was my first fashion position and I am definitely where I am today because of both Mark and Theo.
“Mark took me on as his receptionist and then gave me the opportunity to look after his PR a short time after, even though I had no experience or qualifications. A creative genius and a business baron were the Mark and Theo combination.”
General Pants group general manager Craig King met Keighery in his early twenties, while working for Melbourne retailer Trellini.
“I was in Paris one time on a trip and bumped into Mark, who I’d met a couple of times being in the ragtrade,” he said. “We spent a day walking around and looking at some stores. And then he offered me a job to come and work with him at Marcs. It was around the time he was picking up Diesel. I helped him out with a couple of the stores he had in Melbourne and then I moved to Sydney to work with him up there. And I worked in Paddington a bit in the head office, then I worked in men’s buying.”
King stayed with the company for around five years, before moving on to work for national apparel brand Ambassador Clothing.
Onisforou had not officially appointed a financial firm to broker the sale of Diesel Australia at the time of press. He confirmed the business was not involved in ongoing litigation between menswear retailer yd and former domestic Diesel footwear distributor World Brand Management.
Assia Benmedjdoub