Two Successful Sporting And Street Brands Independently Or Together For Sale

Business description

This is a private and confidential disposal of two major brand label assets.

BRAND 1 - SPORTS/FISHING BRAND ESTABLISHED FOR MANY YEARS WITH GOOD MARKET AWARENESS AND HUGE POTENTIAL

This company was acquired for our group at a substantial price and is one of the leading fishing brands in Australia but has only concentrated on the supply of clothing, auto and noveltys. Its average annual turnover has dropped recently due to our lack of commitment (we failed to show to the majors hence the drop in sales) to the brand due to time and other business involvement at just over $300,000 with a GP of around 70% in this financial year.

We did originally invest a substantial amount of money in staffing the brand up and creating new designs, catalogues and ideas to grow in to other areas such as golf, racing and poker but have so far have not taken these to market due to us moving the staff primarily to Brand 2 which is growing substantially quicker.

There is also a massive opportunity to take the brand from its fishing roots in to rods, baits and technical wear in the immediate term as the brand has a very high recognition in its industry as it was established in 1997 and has sold over 1million units since then through major retailers and many independants. We have not approached other markets for distribution of this product but interest has been shown. We have recently signed a deal which can be terminated on an acquisition clause if desired for licensing and sales through a major US agency.

The company has substantial secure IP and a great name which is a massive opportunity for a buyer with a desire to make the business globally successful.

The sale price recognizing the reducing turnover for 100% of this company is $295,000 plus stock at value including all IP globally OR sale price for 70% of this company is $195,000 plus stock at value including all IP globally and we will retain silent 30%.

BRAND 2 - STREET UNDERWEAR BRAND FASTEST GROWING IN 2011 AND NOMINATED FOR SEVERAL AWARDS WITH MASSIVE PR AND BIG NAMES ON BOARDED

The company was set up in April 2010 and the clothing range of mens underwear was designed and produced with some unique selling points and excellent marketing. The company is now managed by a strong operational team and it continues to grow. Within the first 12months of selling the product to the market, it is already being stocked in nearly 300 major and independent stores with distributors buying in New Zealand and other markets eager to come on board including Canada, Spain and Turkey. We decided to retain ownership to Europe and the US within the company and have set up local distribution centres to handle online and stores sales in these regions. There is a US and UK entity set up that will come as part of the business. This business would fulfil all obligations for any visa requirements for Australia, and potentially the US and Europe.

The sale price for 100% of this company including the European and US distribution chain (already set up and running with a major streetwear chain onboarded) is $1,495,000 plus stock at value including all IP globally OR sale price for 70% of this company is $995,000 plus stock at value including all IP globally and we will retain silent 30%.

EITHER BUY ONE OR BOTH;

The companies are run on minimal staff to reduce overheads and keep the companies running on a positive in tough economic conditions. The opportunities will be clear on due diligence as with a little more capital investment, both of the brands can grow substantially across ranges, markets and potentially with the right capital, easily in to vertical stores of their own. There is always constant interest from distributors for both brands if this was a chosen way forward rather than privately running the regions.

Currently the streetwear brand employs all of the staff and the sports brands used them adhoc but no more than one man year in total across all staff in a year so the sports brand could easily be run by an individual at this stage if seperated. We have recently moved all warehousing out of our own warehouses in to a logistics centre to make the transition process more simplified and thus have removed warehouse staff from our burden. The sports brand could easily be run from home at the initial stages if required to reduce costs.

There is a full time graphic designer, a contracted marketing head, a full time sales person and a full time admin/finance person employed so the staffing costs are minimal. The company will need a new head to run the day to day as this is currently filled by the owners personally.

Property information

Real Estate:

Lease

Business Operation

Expansion potential:

Substantial

Employees:

4