Loss-making SurfStitch, Ginger & Smart sold to a mystery buyer
Alquemie Group has sold luxury Australian women’s brand Ginger & Smart for a token amount to an undisclosed buyer, along with its remaining SurfStitch assets.
Inside Retail reported SurfStitch’s website to be down last week, with its social media posts carrying inquiries regarding unfulfilled orders and refunds as recently as two weeks ago.
The Australian Financial Review has reported that a confidential source close to the sale confirmed that both brands had been losing money for some time and that sales had shrunk to a fraction of their former levels.
While Ginger & Smart showed immense promise upon launch, it struggled to find its footing following the pandemic.
SurfStitch, meanwhile, has not been able to compete with Shein and Temu, who provide cheaper options for consumers.
A spokesperson for Alquemie confirmed to the AFR that the sale news was correct and that the retail group wanted to focus on its growing Lego and General Pants businesses moving forward.
Ginger & Smart was founded by Alexandra and Genevieve Smart in 2002 and earned a listing with department store chain David Jones.
SurfStitch, an online-first surf and skate wear retailer, was once valued at $500 million but entered voluntary administration in 2017 before undergoing a substantial restructure.
Inside Retail has reached out to Alquemie for further comment.
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