×
533
Fashion Jobs
RALPH LAUREN
Assistant General Manager
Permanent · Portsmouth
TOMASZ DONOCIK
Digital Marketing & Sales Coordinator
Permanent · LONDON
LEVI'S
Global Security & Resilience Manager Europe
Permanent · London
PUMA
Digital Marketing Executive Uki
Permanent · Manchester
PUMA
Supply/Planning & Purchasing Controller
Permanent · London
PUMA
Sales Support Coordinator With Golf Experience
Permanent · Castleford
PUMA
Strategic Key Account Manager jd Group
Permanent · Manchester
LEVI'S
Digital Key Account Manager - Footwear & Accessories
Permanent · London
LEVI'S
Licensing Operations Manager
Permanent · London
FOREO
Head of Marketing
Permanent · London
SHISEIDO
Senior Marketing Manager - Shiseido
Permanent · London
SHISEIDO
Bareminerals Account Manager - Moores, Colearine
Permanent · Coleraine
SHISEIDO
Accounts Payable Manager
Permanent · LONDON
GUCCI LIMITED
Gucci Client Advisor (Part-Time)
Permanent · BIRMINGHAM
LEVI'S
Levis Cambridge Tailor 8 - 25 Hours
Permanent · Cambridge
LEVI'S
Levis Cambridge Sales (Weekends & Weekdays)
Permanent · Cambridge
LEVI'S
Key Holder - 16 Hour Contract
Permanent · Stretford
OTIS JAXON
a Pourvoir Immédiatement - Stage e - Commerce Bijoux
Internship · LONDON
OTIS JAXON
Jewellery Admin Internship – Ecommerce Jewellery Company - London
Internship · LONDON
OTIS JAXON
Social Media And Content Creation Internship
Internship · LONDON
MARIA TASH LIMITED
Business Development Coordinator
Fixed-term · LONDON
SPOT ON MINDS LTD
HR Recruiter Internship
Internship · LONDON
Published
Jul 15, 2019
Reading time
3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Swallowfield to sell manufacturing business and become Brand Architekts

Published
Jul 15, 2019

In a major announcement on Monday, Swallowfield revealed it has sold its cosmetic manufacturing business to Knowlton Development Corporation. From now on, it will focus solely on its portfolio of beauty brands.  


Swallowfield


The company owns cosmetics, fragrance and haircare brands including Super Facialist, Fish Soho, Dirty Works and Dr. Ceuticals.

Subject to shareholder and regulatory approval, the transaction will raise about £35 million, which will be used to fund investment to drive organic growth and for future acquisition opportunities.  

A general meeting will be held on 31 July in London to vote on the proposal. If approved, the operation will lead to the departure of Matthew Gazzard, group finance director, and Jane Fletcher, group sales and marketing director, who will transfer with the manufacturing business.

Additionally, Swallowfield is proposing to change its name to Brand Architekts to better reflect its new focus. Swallowfield acquired Better Architekts, a portfolio of mid-premium beauty, body and haircare brands, in 2016.

“Following a strategic review process, the board concluded that the manufacturing business will be better served in a business of larger scale and that the proposed disposal is in the best interests of all of its stakeholders,” said the group in a statement on Monday.


Dirty Works is one of Swallofield's brands - Dirty Works


Interestingly, the brands business experienced a 3% decline in revenue in the 52 weeks ended 29 June 2019, hit by softer UK demand and increased promotional activity. Amid challenging conditions in the UK retail market, this seems like a risky time to invest in retail brands, but Swallowfield said international sales have grown 8% in the last year and it believes there is “significant opportunity for sustained international growth".

Meanwhile, the manufacturing business saw a 15% uplift in revenues during the same period, helping the company post group revenue growth of 7%. 

But the owned brands business has stronger margins than the manufacturing business and has delivered superior financial returns over the last five years, Swallowfield said.

Brendan Hynes, chairman, commented: "The proposed disposal of the manufacturing business is a transformational development for the group, which will see the owned brands business become the sole focus of operations. As announced on 5 march 2019, the board determined that the manufacturing business needed a streamlined and simplified operation, and undertook a detailed strategic review to determine the appropriate course of action. Following careful consideration of the options available, the board strongly believes that the proposed disposal enhances the long term prospects of both businesses and is in the best interests of all stakeholders.”

Tim Perman, CEO, added: “The group has made significant strides over the last 5 years developing the brands portfolio, both organically and through acquisition, and this has not only delivered superior financial returns but has also given the group greater control over its own destiny. We believe that the opportunities to grow this business will be significantly enhanced through a simplified strategic focus and we have a strong and experienced brand team to drive this forward. The proceeds from the disposal provide the group with the financial strength to invest in further organic and acquisitive growth and we are confident of being able to profitably realise further market opportunities in the future.”

Copyright © 2021 FashionNetwork.com All rights reserved.