M&A Activity Good News for Direct Sellers
Strategic acquisitions of catalogue and online brands suggests a rebound is at hand, according to Catalogue e-business magazine.
Ilfracombe, United Kingdom, April 24, 2009 --(PR.com)-- The recent flurry of mergers and acquisitions within the UK direct selling sector suggests that the industry may be getting positioned for a rebound.
In the past few weeks alone, toys and novelties cataloguer/retailer Hawkin’s Bazaar acquired toys cataloguer Letterbox from Findel, and Everything but the Music (EBTM), an online seller of music-inspired fashion, was bought out of administration by TKC Direct, the parent company of fashion cataloguer/retailer Route One. In addition, telecoms distributor Nimans purchased rival cataloguer/online merchant Rocom. And two etailers of eco-friendly goods, Natural Collection and Ethical Superstore, merged, although they will retain their separate brands.
“That these deals were strategic, rather than a matter of private equity firms swooping down to take advantage of dying or dead brands, is encouraging,” says Sherry Chiger, editorial director of Catalogue e-business magazine, which broke the news about the Letterbox and EBTM acquisitions. “And even though Letterbox was in the process of being shut by Findel, while EBTM was in administration, the fact that two solid-performing direct marketers thought they were worthy of snapping up, and were able to fund the acquisitions, is good news indeed.”
Of course, no-one is suggesting that it’s nothing but smooth sailing ahead for multichannel sellers. Another Findel title, furniture cataloguer Cotswold Company, has not found a buyer and is being wound down. Within the past month two other direct sellers, nursery products etailer Two Right Feet and ArgentVive, the parent company of online booksellers BookRabbit.com and SamedayBooks.com, fell into administration.
“No doubt we’ll be seeing more faltering cataloguers and online merchants,” Chiger says. “But at least other, more solid direct sellers are showing an interest in bolstering their own businesses by acquiring sympathetic brands and gaining economies of scale. This in turn shows that these busineses are looking beyond merely surviving the downturn.”
About Catalogue e-business:
With the strapline, “News, tactics, and views for cross-channel commerce”, Catalogue e-business is the leading publication for offline and online cataloguers and multichannel retailers in the UK. In addition to the print magazine, the Catalogue e-business family includes a website, www.catalog-biz.com, and Insight, a free fortnightly enewsletter offering tactical advice and industry research.
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In the past few weeks alone, toys and novelties cataloguer/retailer Hawkin’s Bazaar acquired toys cataloguer Letterbox from Findel, and Everything but the Music (EBTM), an online seller of music-inspired fashion, was bought out of administration by TKC Direct, the parent company of fashion cataloguer/retailer Route One. In addition, telecoms distributor Nimans purchased rival cataloguer/online merchant Rocom. And two etailers of eco-friendly goods, Natural Collection and Ethical Superstore, merged, although they will retain their separate brands.
“That these deals were strategic, rather than a matter of private equity firms swooping down to take advantage of dying or dead brands, is encouraging,” says Sherry Chiger, editorial director of Catalogue e-business magazine, which broke the news about the Letterbox and EBTM acquisitions. “And even though Letterbox was in the process of being shut by Findel, while EBTM was in administration, the fact that two solid-performing direct marketers thought they were worthy of snapping up, and were able to fund the acquisitions, is good news indeed.”
Of course, no-one is suggesting that it’s nothing but smooth sailing ahead for multichannel sellers. Another Findel title, furniture cataloguer Cotswold Company, has not found a buyer and is being wound down. Within the past month two other direct sellers, nursery products etailer Two Right Feet and ArgentVive, the parent company of online booksellers BookRabbit.com and SamedayBooks.com, fell into administration.
“No doubt we’ll be seeing more faltering cataloguers and online merchants,” Chiger says. “But at least other, more solid direct sellers are showing an interest in bolstering their own businesses by acquiring sympathetic brands and gaining economies of scale. This in turn shows that these busineses are looking beyond merely surviving the downturn.”
About Catalogue e-business:
With the strapline, “News, tactics, and views for cross-channel commerce”, Catalogue e-business is the leading publication for offline and online cataloguers and multichannel retailers in the UK. In addition to the print magazine, the Catalogue e-business family includes a website, www.catalog-biz.com, and Insight, a free fortnightly enewsletter offering tactical advice and industry research.
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Contact
Catalogue e-business
Sherry Chiger
+44(0)1271 866221
www.catalog-biz.com
Sherry Chiger
+44(0)1271 866221
www.catalog-biz.com
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