Ginger & Smart and SurfStitch sold amid Alquemie Group's strategic refocus

Australian fashion label Ginger & Smart and online retailer SurfStitch have been sold by Alquemie Group to an undisclosed buyer for a nominal amount. The sale aligns with Alquemie's strategy to concentrate on its core growth brands.

Transaction snapshot

• Deal value: Nominal amount (exact figure undisclosed)

• Deal multiples: N/A

• Deal type: Asset sale

• Investors: Buyer undisclosed; seller is Alquemie Group

Alquemie Group confirmed the divestment of both brands, stating the move allows the company to focus entirely on expanding its key assets, including the Lego Certified Stores and General Pants Co. The group currently operates 23 Lego stores and 55 General Pants outlets across Australia.

Ginger & Smart, established in 2002 by sisters Alexandra and Genevieve Smart, gained prominence in Australia's fashion scene and was featured in major publications and events. In 2019, Alquemie (then Alceon Retail Group) acquired a majority stake in the brand. However, the label faced financial challenges, leading to a strategic administration in 2022 to address legacy issues and restructure operations.

SurfStitch, launched in 2007, was once valued at $500 million but struggled in recent years due to increased competition from global online retailers. The brand's website experienced prolonged outages prior to the sale, raising concerns among customers about order fulfillments.

Both brands had been underperforming, with sales declining significantly over time. The undisclosed buyer's plans for the future of Ginger & Smart and SurfStitch remain unclear, as no public statements have been made regarding the direction of these brands post-acquisition.

This divestment reflects Alquemie Group's commitment to streamlining its portfolio and focusing on brands with stronger growth trajectories.