Acquisition activity is continuing in the UK fashion sector with off-price specialist BrandAlley acquiring a majority stake in sneaker reseller The Edit LDN, the new owner saying the buy will support its long-term sustainable aims.
And it added that The Edit LDN will also help it use “innovative new channels to maximise customer experiences”.
The Edit, which has partnerships with Harrods, Galeries Lafayette and Harvey Nichols, said it took the decision to “consolidate with an industry leader” as the challenges in the economy last year had led to “cash flow constraints” for it during Q4.
Fromm BrandAlley’s viewpoint, the buy looks to be a strong one given its new acquisition’s “more youthful customer demographic and substantial community of engaged followers”.
The company has been looking around for new opportunities to grow its business in recent periods and only last autumn it accounted for 50% of the latest funding round for high-end resale platform Sign of the Times.
Its CEO Rob Feldmann highlighted BrandAlley’s 8 million strong members-only database, its dedicated in-house warehouse operations and customer service team, that should help it “provide full operational support across our group of companies and drive profitable growth of The Edit LDN globally through Moses [Rashid] and his team. We are looking forward to an exciting journey ahead.”
And Edit CEO Rashid added that 2023 was a year of positive growth and revenue, but also “a difficult period with financial challenges being accelerated by external funding sources that we had on our creditor books. In order to continue to achieve our growth goals, it was crucial to act fast to find a long-term partner who sees the potential to take Edit LDN global and offers the operational infrastructure required for sustainable growth. This move will bring confidence to our community, suppliers and the reseller industry as a whole.”
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