Fashion company has big plans for big brand
The $4 million agreement, which came into effect this month, included the assets of all brands formerly trading under the company's umbrella - Chain Reaction, Big Advantage, Girl Mania and more strategically, Big City Chic.
The Big City Chic brand, aimed at 20 - 30 year old plus-size women, will reinforce SFG's foothold into the larger size market as its Autograph label continues to perform strongly among mature-age consumers.
SFG CEO Gary Perlstein said the company, which also operates Crossroads, Katies and Miller's Fashion Club, intends to significantly bolster Big City Chic's 21 stores in coming years.
While he added that SFG was still in the process of consolidating its acquisition, he did confirm the brand would grow to match Autograph's 100 retail store operation.
"It's important that we get some runs on the board first, integrate the two companies then tap into its great potential for mass market retailing. This way, we can establish an expertise in the larger size market across different demographics."
The strategy is also why SFG has chosen not to maintain the Chain Reaction, Big Advantage and Girl Mania brands, Perlstein said. Instead, all existing stores would be rebranded into Autograph, Crossroads, Katies and Miller's Fashion Club outlets.
"We felt the sites that remained could be perfectly parlayed into our existing brands," Perstein said. "Within our company we have a wide offering and felt there was no need for further brands under our umbrella."
Perlstein confirmed that all retail staff under the Chain Reaction business had retained their positions.