Myer Buys Sass & Bide For $42.5 Million
Myer announced today that it has purchased a 65% share of Sass & Bide for $42.5 million.
The surprise buy effectively means that David Jones will lose the right to stock the label, which it formerly referred to as a "star fashion performer".
Myer CEO Bernie Brooks defended the aggressive move by likening it to a set of steak knives: "there's not one particular benefit - it's all of it. The purchase will allow Myer to stretch the brand portfolio over the next few years using (our) supply chain," Mr Brookes said.
With Myer sales down $1.733 million in the last financial year, Brookes said he had not seen retail confidence at such a crisis point in over 30 years.
"This is the most unique and challenging period. The consumer is fragile and changing week to week. I've given up trying to predict (them)."
Despite the sale, Sass & Bide designers Sarah-Jane Clarke and Heidi Middleton have no plans to leave the company, and will work alongside CEO David Brisken to continue growing the brand. In addition, the
Sass & Bide design team will join forces with the Myer design group to expand the accessory market.
"We'll be looking at stretching Sass & Bide into other areas - perfume and sunglasses for instance," Brookes said.
Sass & Bide generated more than $37 million last financial year, and looks set to reach the $40 million mark this year.
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