Outland Denim Group has purchased the assets of Nobody Denim, which was placed into liquidation on October 10.
The group now includes the Outland Denim brand, its Cambodian factory Maeka Standard, its textile waste solution Huskland, and Nobody Denim. Five Nobody Denim staff have been retained following the sale.
Outland Denim CEO James Bartle told Ragtrader his immediate plan is to stabilise the brand.
"It's gone through a really tough time as a brand," Bartle said. "Coming on the other side of all of that, we just really want to make sure that all stakeholders are confident again in the brand and where we're going to go. That's our focus over the next few months ahead."
From there, Bartle said the key question for him is how to grow Outland Denim and Nobody Denim together.
"We're direct competitors," he said. "I would always laugh to the guys, because whenever we would land a retail store that was a Nobody store, we would be cheering because they were our greatest competitor. It's funny that we're now part of the same group.
"We really need to work out: how do we run these brands so that they're not cannibalising each other and actually working into their strengths? From there, we have our eyes set on the international market."
Bartle said the Outland group has identified regions for growth, including major retailers in the US.
"I understand there's economic challenges in a lot of those places. Over the next few months, we're going to learn more about how amenable that would look as well when targeting some of those top tier retailers. But it's also about really getting those collections to work well together as well.
"I can see Nobody and Outland in the same stores. How do we get them to really work seamlessly together?"
Bartle conceded the challenges of local manufacturing, with Nobody Denim championing Melbourne-based production throughout its trading history.
"Nobody is going to have that same impact," he said. "But we can't overlook the challenges and how sad it is for all the people that were manufacturing in Australia and what it means for them, and the Australian manufacturing industry."
Nobody Denim axed 40 staff at its local factory in August, according to various media reports.
Condilis told the Australian Financial Review that manufacturing in Australia has become the "biggest challenge ever", adding the axing of 40 staff was the "worst and the saddest thing I've ever had to do."
Bartle said the business is navigating a similar challenge ahead.
"That's one of the really sad truths that we're facing. How do we make it viable to manufacture locally? I know for us, at the price points we sell, it's not viable. The overheads are really high and it's really difficult. But it doesn't mean that we've lost hope.
"The Nobody brand has a very strong commitment to Australia as does Outland. We're constantly talking about ways that we can bring opportunity back into Australia through the businesses."
Bartle has launched a $2 million crowdfunding campaign to finance the next phase of growth for Outland Denim.
The raise is expected to accelerate Outland Denim’s social and environmental plans and grow market share. This includes employing more women at its Cambodian factory and reducing environmental impacts in its production output.
“This campaign marks a significant milestone as we expand our reach and mission to empower more women,” Bartle said. “Our sights are now firmly set on global expansion for both Outland and Nobody Denim, solidifying our leadership in sustainable fashion on a global stage.
“However, this move doesn't just benefit our artisans and the environment; it amplifies the value proposition for our investors. Imagine the possibilities—more vulnerable people empowered, more communities transformed.”
The expression of interest campaign is open until Tuesday, November 7.
Nobody Denim has a customer base of over 60,000 and accrued $5.6 million in revenue in FY23. Its social media channels and email subscription platforms have over 140,000 followers.
From this acquisition, Outland Denim Group now has a combined 170 retail doors across Australia.