The head of resurrected fashion brand Brown Sugar has resigned, following a fall out with investors over the future of the company.
David Mullen, managing director at Brand Directions, which acquired Brown Sugar after it collapsed into administration last year, relinquished his role yesterday, broke the news via a company announcement as follows:
“I am writing to announce my decision to resign from my role as managing director of Brown Sugar.
Since taking up the challenge of reconstructing the business, I have firmly believed in our strategy, which was based on building a reliable supply chain of quality, on trend product in a cohesive collection. This strategy was designed to ensure we restored trust in the Brown Sugar brand internally, with our suppliers and to our loyal customer base. We have ensured that new product has been focused on our brand identity which I believe is critical to Brown Sugar’s success in the difficult economic and retail environment.
Encouragingly, we have seen a positive reaction to our new winter 2012 collection which has been selling through at a rate faster than planned, and ahead of industry average.
Our offshore investors have provided the financial backing required to support the business during its return to profitability.
Unfortunately, over the past few weeks it has become apparent that we have different strategic approaches with regards to the future growth of the Brown Sugar business. As the investors’ approach differs from my own belief of what is required to restore the brand, I have decided to resign as MD, effective immediately.
I would like to acknowledge the work of our dedicated staff and suppliers, and thank them for their efforts. I am grateful for their support, and wish the team the best for the ongoing growth of the brand.”
Mullen, who recently spoke exclusively to Ragtrader magazine [March 2012 issue], about his role in rescuing the Brown Sugar business and expansion in the pipeline, has not yet revealed his own plans for the future.