Brand Collective + Shoes & Sox

Transaction Background

Anchorage acquired Brand Collective from then ASX-listed Pacific Brands in December 2014. Prior to Anchorage’s acquisition, the business was a non-core, underperforming orphan of Pacific Brands.

In March 2015, Anchorage also acquired Shoes & Sox from its founders. As the largest customer for Brand Collective licensed brand Clarks shoes, this acquisition was highly complimentary to the existing business, enhancing Brand Collective's pathway to the customer and improving its position in the footwear value chain.

Business Overview

Brand Collective is a leading footwear and apparel house of brands in Australia, with a portfolio of iconic owned and licensed brands. Brand Collective also owns Shoes & Sox, Australia's leading independent children's footwear specialist. The business has +1,200 employees and sells through a combination of major department stores and discount department stores, ~90 branded retail sites, ~40 Shoes & Sox Myer concessions as well as company owned websites.

Turnaround Program

Anchorage developed a comprehensive rejuvenation plan for the business. Together with increased strategic focus and investment, the improvements implemented under this plan were designed to leverage the full potential of Brand Collective’s enviable brand portfolio. The key aspects of the Anchorage operational improvement program included:

• Diversified revenue from predominantly wholesale to true omni channel, selling through a combination of major department stores, around 90 branded retail sites and company owned websites

• Significantly grew on line revenue from less than 5% of overall revenue at acquisition to 25% at exit

• Invested in systems, processes and disciplines to leverage the value of the brand portfolio

• Executed, integrated and grew the highly complimentary Shoes Sox bolt on acquisition

Financial Performance

Under Anchorage’s ownership, Brand Collective’s EBITDA improved from a loss at acquisition to a significant profit in FY21. In light of these improvements, the performance of the business during FY20/21 and following inbound interest, Anchorage commenced a targeted sale process in early 2021.

Exit

Brand Collective was successfully sold to Melbourne-based family office, LK Group in August 2021.