Fashion businesses heading into administration, looking for a buyer or planning to sell shares may have found their lifeline, with investors looking to purchase an Australian fashion company.
Oz Sourcing Hub director Shehan Wickramasekera and his Dubai business partner are seeking to invest in an Australian fashion retailer, wholesaler or manufacturing facility, to the tune of approximately $5 million to $100 million or more.
Wickramasekera told Ragtrader that the investors will look to grow the brand they invest in.
"The fashion industry in Australia is a powerhouse on its own, there are many Australian brands that are known around the globe for their uniqueness.
"There’s plenty of resources here in terms of skilled designers, technology and materials but, when it comes to growth, some of these brands which have so much potential, struggle with capital, which is where we come in.
"We hope to invest in such a brand which has the potential to grow, even if they are struggling right now with the effects of COVID on the business, we hope to turn it around to reach its true potential," he said.
Backed with experience in the fashion retail space after serving in roles at Retail Apparel Group and Next, Wickramasekera's nine-month-old Oz Sourcing Hub has experienced rapid growth since it was founded.
The business is currently providing its services to Inditex, PVH, Express, Next, True Alliance, Just Group and Hanes Australia.
While witnessing this growth, Wickramasekera said that the desire to invest in a brand is a strong driver for he and his business partner.
"We have been working in the fashion industry for years in a variety of markets, hence, we have a broad-spectrum view of the industry.
"This is the fruit of our discussions - which have been happening for some time - to invest on a business to expand globally through retail and online channels.
"As we have realised the potential of the Australian fashion industry, we thought this would be the best place to start.
"Key inputs from us would be of course the capital, and the key executive decisions which are backed by experience to implement new strategies to the business to guide its growth," he said.
The investors will consider the financial statements, brand value of the business and the growth potential as the key factors assessed when looking at the potential acquisition.
Wickramasekera added that the purchase will remain discreet until the deal is finalised.
"We will ensure a smooth transition and maintain confidentiality as required.
"We welcome business owners, shareholders and founders to submit their EOI through email.
"Finally, we are a group of companies and we have a strong cash flow to do this investment.
"We are looking to grow and if we believe it's a great business and we can add value to it we are certainly interested in acquisition," he said.
Shehan can be reached via email: director@ozsourcinghub.com