Home shopping specialist N Brown has vowed to return Figleaves to profitability after buying the lingerie etailer for £11.5m on Tuesday.
Figleaves is “moving towards break-even” and, with the help of N Brown’s resources, will be profitable again next year, said N Brown chief executive Alan White.
He would not disclose Figleaves’ figures for this year, but in the 12 months to June 28, 2009, the etailer made a pre-tax loss of £6.4m.
White said Figleaves fits well with the business as it is a “niche offer”, similar to N Brown’s other brands. He said Figleaves, plus its existing lingerie offer, consolidates its position as the largest online lingerie player. It also opens up the business to a younger demographic.
White said it was too early to say if there would be any relocation of head office or facilities and that Figleaves chief executive Julia Reynolds would be staying on to run the business. Figleaves, which is expected to reach sales of £23m in the year to June, has been extending its reach with a clothing offer, which White said N Brown would be able to help develop. He also said there would be cross-selling opportunities for its other brands for shoes and clothing.
Figleaves sells to more than 100 countries. White said N Brown’s other brands might use this network to launch into other markets.