Designer Kit Podgornik has sold her luxury fashion and lingerie label to Apparel Group, the owner of both Sportscraft and Saba, in the latest deal within the boutique fashion sector.
The move comes after the boutique fashion market has been suffering over the past year, hit by the overall downturn in retail spending. Earlier this week Belinda International was placed into administration, while jeans label Bettina Liano suffered the same fate during July.
However, the transaction also comes as department stores and larger companies are keen to snap up valuable brands, with Myer purchasing Sass & Bide earlier this year in a deal worth over $40 million.
Apparel Group was contacted by SmartCompany this morning, but no reply was available prior to publication. The company has reportedly purchased Willow, with Podgornik to remain on board as creative director.
She told The Australian that the business is looking to “expand its retail infrastructure”.
“We are also looking to establish our online presence and continue to support our strong international wholesale business.”
Apparel Group executive chairman also welcomed the decision, which reportedly has taken six months to finalise.
“The Sportscraft, Saba and Willow brands are very complementary, and we are looking forward to growing the business,” he said. “This latest acquisition is consistent with Apparel Group’s multi-brand, multi-channel vision.”
Willow was launched in 2003 at Australian Fashion Week. It currently operates three boutiques – two in Melbourne, one in Sydney – while products are also sold through David Jones, along with other stores internationally. The label eventually received attention at the New York Fashion Week. The first store opened in 2008.
The transaction comes during a shaky period for boutique fashion, with shoppers opting for cheaper alternatives.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
