MELBOURNE: Consolidated Capital Investments (CCI) is set to make its first fashion acquisition since its recent restructure.
The company formerly known as Mercury Group has announced its intent to acquire 80 per cent of Melbourne-based business Global Designer Brands Holdings (GDB). The acquisition is founded largely on GDB's recent securing of the local licence for Playboy.
“Typical licensing arrangements between Playboy Enterprises and licensees last for a duration of three to five years,” a CCI spokesperson said.
“GDB having been awarded an initial 10-year licence and scope for two subsequent 10-year renewals is a strong reflection of the company's operational standards and strategic direction.
“The board of Consolidated Capital Investments is thrilled to have GDB as part of the overall company structure both on a stand-alone basis as well as its clear and measurable ability to assist and progress other entities held under the Consolidated Capital Investments umbrella.”
CCI said opportunities presented by the Playboy licence include the repackaging of Playboy product for Australia's retail fashion sector, and a possible franchise store network. Its goal was “a retail channel of over 30 stores”.
The company also identified Playboy's database of 19 million subscribers as a key benefit of the acquisition.
“[CCI] is already exploring commercial relationships to leverage profitable outcomes from this significant asset.”
The deal with GDB is among the first significant ventures CCI has undertaken since it relinquished the Mercury Group moniker in April 2010.
The name change occurred in the wake of a stream of upheavals within the company including the appointment of receivers and administrators in September 2009.
It subsequently sold off a number of company assets – including fashion brands Rochford Australia, No Fear, Billiecart and French Kitty – in October 2009.
Erin O'Loughlin