Oroton severs ties with The Daily Edited
Oroton Group has severed ties with online personalised accessories retailer The Daily Edited (TDE), selling back a 30 per cent stake it bought in the business prior to its collapse last March.
In a market announcement on Wednesday evening Oroton administrators Vaughan Strawbridge and Glen Kanevsky from Deloitte, who continue to control the business while a deal to sell it to Will Vicars is pending court approval, said an agreement had been reached with TDE founders Alyce Tran and Tania Liu to dump its shares.
Oroton will recover $2.2 million in the deal, less than half the $4.5 million it invested in the pureplay retailer under former chief executive Mark Newman.
Oroton also appears to have severed several arrangements related to its operational support of TDE.
At the time the TDE founders said they planned to use Oroton’s investment and operational support to chart US expansion, while Newman said deal was a strategic decision.
“Ultimately for us, it’s about creating scale, our vision for the group is to build a portfolio of affordable luxury brands, and that’s why this is a perfect fit for us,” Newman told Inside Retail last March.
Tran had hoped Oroton, which collapsed late last year under the weight of difficult market conditions, would serve as a mentor for her and Liu as they expanded their business.
“Having Oroton onboard allows us to have a sounding board on what works and what doesn’t – a bit of higher level guidance or mentorship,” Tran told Inside Retail last March.
The Daily Edited has been contacted for comment.