Frasers has bought a 28.7% stake in Australia-based fashion marketplace MySale, which it said would help it clear end-of-line stock.
Frasers, which owns Sports Direct as well as eponymous department stores, said the deal “creates an opportunity for a strategic partnership whereby end-of-line group products can be cleared via an established clearance channel”.
The retailer said: “This pipeline will be further enhanced by the benefits of counter seasonality between the European and Australian climates.”
In March MySale, which has had a mixed record, reported that a new management team led by chief executive Kalman Polak had made “good operational progress” as it scaled its marketplace platform. Although sales were down, gross merchandise value was up.
However, MySale reported that revenues had been “subdued” in the third quarter as the Omicron Covid variant disrupted Australia and that there was “pressure on the cash resources of the group”.
MySale raised AU$2.3m (£1.3m) through loan notes to fund ongoing investment in the marketplace platform and for general working capital.
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