In a statement, Frasers Group noted that the deal marks a “strategic partnership whereby end of line group products can be cleared via an established clearance channel.”
The company added that “this pipeline will be further enhanced by the benefits of counter seasonality between the European and Australian climates.”
Frasers’ decision to acquire a stake in MySale comes at a time when the marketplace is struggling to keep its engines humming due to supply chain disruptions. The company reported a 6% year-on-year drop in revenue for the second half of 2021. While MySale’s profit was up 3%, its underlying EBITDA fell by 60% to approximately $695,000.
The deal marks Frasers’ latest effort to grow its portfolio of brands. Less than a month ago, the company increased its stake in HUGO BOSS. The company now owns 4.9% of HUGO BOSS’ stock directly and another 26% of stock indirectly through the sale of derivatives known as put options.
In June 2022, the company also acquired fast-fashion retailer Missguided for $24.3 million, a day after filing for bankruptcy. Missguided is expected to operate as a standalone business under Frasers’ umbrella.
Some of the other companies in Frasers’ portfolio include Flannels, House of Fraser, and Jack Wills.