NATIONAL: Struggling wholesale group Mercury Brands has failed to secure enough funding to acquire the apparel arm of toy and lifestyle company Funtastic.
The Melbourne group had moved to acquire brand licenses and stock for Australian Horizons with the acquisition conditional on the group's ability to gain financing by August 3.
Despite Mercury directors claiming they had received "strong interest" from finance providers, the company was unable to secure the required funds by the due date and Funtastic terminated the agreement five days later.
In a statement to the Australian Securities Exchange (ASX), Funtastic said it was presently in negotiations with another buyer keen to pick up its apparel business but had not yet signed any agreement with the third party.
Mercury Brands portfolio includes the labels Purr, Rochford, Billie Cart, Contempo, Crusty Demons and international denim brand Chip and Pepper.