After months of uncertainty, SurfStitch is setting its sights on sustained growth and the possibility of new shop fronts, thanks to investments by Alceon Group.
SurfStitch Australia Pty Ltd has announced the completion of the Sale and Purchase Agreement (SPA) between Alceon Group and SurfStitch Group Administrators.
Earlier this month, SurfStitch creditors voted in favour of the proposal by EziBuy, a subsidiary of private equity firm, Alceon Group. Alceon Group’s Executive Director, Richard Facioni says he’s excited about the future of SurfStitch.
“The underlying SurfStitch Australia business is in good shape; it is fundamentally a good business,” he says. “Unfortunately, it has been caught up in the group’s administration which has caused issues, such as uncertainty for staff, suppliers, and customers, which we can now put to rest.”
According to Facioni, Alceon’s plan is to invest capital and capitalise on the brand’s unique strengths in an attempt to restore confidence in the business.
“Having the support of Alceon, with our proven retail expertise and e-commerce investments – which includes EziBuy – creates exciting opportunities for SurfStitch, its team, its customers and its partners”, Facioni says.
This sentiment has been reiterated by SurfStitch’s General Manager, Justin Hillberg, who believes Alceon will help drive the brand towards a bright future. “Throughout the last 12 months we have continued to focus on our core competencies while preparing the business for success post-VA,” he says. “Now, with the support of Alceon and conviction in our strategic plan, we are looking forward to generating responsible growth through disciplined execution.”
After a tumultuous period, the brand is relieved to be back in a period of stability, and has said it will be focused on investing in awareness initiatives and revitalising its brand proposition, for the benefit of both consumers and partners.
SurfStitch has also hinted at the possibility of new store launches, in an effort to cater for specific niches, while leveraging off existing e-commerce and fulfillment capabilities. However, sustained growth of the SurfStitch brand is still said to be the primary focus, at least for now.
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