Hilco is delighted to offer for sale the business and assets of a UK brand, known for underwear manufactured from the latest European sourced sustainable material. Offering various styles of men’s and women’s underwear, with a recently launched loungewear range, there is a significant opportunity to drive the Company’s revenue and reduce costs.
The Brand: The sale provides the opportunity to acquire a brand that has been trading for 5+ years with a rapidly increasing market share and strong customer satisfaction, evidenced by impressive online reviews and high repeat custom.
Growth Metrics: Achieved through the brand’s improved prominence and extended product range, revenue growth over the last 3 years has been substantial, rising 75% from £426k pa to £747k pa, and 37% to £1.025m, with potential for significant additional growth.
Product Range: Originally producing one style of men’s boxer, the brand has evolved to offer 6 men’s styles, 2 women’s styles and men’s t-shirts. There is potential to expand the offering, which could include extending the underwear ranges, launching loungewear and limited edition prints/patterns.
E-Commerce-Driven Model: Revenue is generated via the direct-to-consumer platform which generates in excess of 450,000 annual visitors, (70% mobile traffic). High average conversion rate of 5.47%.
Loyal Customer Base: The Company has an impressive level of repeat custom, with a 58% loyalty rate, LTV of £147 (CAC of £30), and annual repeat revenue in excess of £500,000. The customer database holds c. 49,000 subscribers.
Opportunity for Expansion: Prior to Brexit a large volume of revenue was generated from European markets, particularly Ireland and Germany. Recent focus has been on growth within the UK market, with Europe now providing significant potential to drive turnover, particularly given the less competitive landscape in numerous major countries.
Potential to Reduce Costs: By investing in larger stock orders and working with a new supplier, cost per unit can be reduced by 30 – 40%. Changing 3PL provider or providing fulfilment in house could further reduce costs.
Trading: 12 months turnover to end Jan 2025 c. £1.025m.
Offers Invited
Should you require further information on the opportunity, please sign and return the attached non-disclosure agreement (NDA) via email to [email protected]
No warranties, express or implied, are provided in relation to any information or statements made in connection to this opportunity. The information contained herein, and within the project dataroom, has not been verified by Hilco and prospective purchasers must undertake their own due diligence to satisfy themselves as to the accuracy of all such information and any statements made. Hilco’s full Terms and Conditions apply. Hilco acts as agent for the Vendor who offers for sale only such right, title and interest the Company possesses in the assets.
