The assets of EthicalSuperstore.com, a seller of all things
eco-friendly, have been acquired out of administration by Spark
Response, a contact centre and fulfilment firm. The acquired
business will operate as a new subsidiary company called Spark
etail Ltd. Ethical Superstore founders Andy Redfern and Vic
Morgan, together with Spark directors Noel Lambert and Peter
Slee, will form the board of directors of the new business.
The two companies, both based in Gateshead, Tyne and Wear, had
been working together for some time, with Spark managing inbound
call handling for Ethical Superstore since April 2010. In August
last year, 16 members of warehousing and contact centre staff
transferred from Ethical Superstore to Spark’s premises to work
on the account. Upon completion of the deal, Spark says
approximately 30 Ethical Superstore jobs will have been
saved.
Up until Christmas, Ethical Superstore was on course to deliver
an annual profit for the first time. However, failure of its
payment systems combined with adverse weather in December
affected sales and order deliveries. This was exacerbated by the
sudden withdrawal of funding from the company’s biggest
investor.
On 15th March, after four weeks of negotiations with potential
buyers and options for the business, Ethical Superstore’s largest
trade creditor, Spark Response, acquired the assets of the
business.
The acquisition secures the continuation of the three core
websites: Ethical Superstore, Natural Collection and the recently
launched online marketplace OneGoodMarket. Using Spark Response’s
fulfilment expertise, Ethical Superstore will also continue to
serve its partners through white-label sites.
In an interview with Catalogue e-business, Peter Slee,
managing director of Spark Response, said that having worked with
Ethical Superstore for some time, he was familiar with the nature
of its funding structure and was aware that it may need further
working capital to sustain its growth plans. Saying that, he
believes Ethical Superstore to be “a fundamentally sound
business with good growth potential in serving the market for
fair trade and eco-friendly products,” and hopes that the
acquisition reflects the confidence and faith Spark Response has
in the business. He is also hopeful that the vast majority of
Ethical Superstore’s suppliers will continue working with the new
company.
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