Myer rescues Marcs, David Lawrence, buying brands and stock from administrators

Myer has come to the rescue of two of Australia's most popular fashion labels, Marcs and David Lawrence, buying the brands and stock from administrators two months after they collapsed.

The acquisition, announced to staff on Thursday, includes Marcs' and David Lawrence's existing inventory, brand names and intellectual property but does not include lease liabilities and staff obligations.

Marcs' and David Lawrence's parent company, M Webster Holdings, collapsed on February 2 owing about $30 million to creditors including owner Malcolm Webster, a secured creditor.

Myer's chief merchandise and customer officer Daniel Bracken told The Australian Financial Review that Myer stepped in about a week ago after it became clear that no buyer could be found and the brands would be wound up.

"These brands are very very successful brands at Myer, both are considered part of our wanted brands strategy and both are highly productive (with high sales per square metre)," Mr Bracken told the AFR.

More detail in the AFR article.
http://www.copyright link/business/...and-stock-from-administrators-20170412-gvk1rh

Ash here.

The price is considered not material to MYR - they would have offered the receivers a very low price.  Good use of the balance sheet, even if just to wind off the stocks from manufacturer to shipping to warehouse.  If they continue to use the brands, money for jam.

Shorts are still out there yet the price shows little volatility.

Ash