2009 in review


A look back at the industry headlines for 2009 reveals that the
year was not one of unmitigated gloom. Yes, Freemans Grattan
Holdings made more than a quarter of its workforce redundant;
yes, Royal Mail work stoppages made life even more challenging
for direct merchants as they entered the Christmas selling
season. But a number of flailing businesses were acquired and
relaunched. Even more promising, several major players invested
in the future by rolling out new brands or foreign initiatives.
All in all, 2009 looks less like a year of disappointment and
more like one of transition and preparation for better times to
come.

January

  • Freemans Grattan Holdings, formerly Otto UK, announced plans
    to close one of its two contact centres, two warehouses, and its
    London buying office. Ultimately it made 1,000 of its 3,800
    employees redundant.

  • The management team of Virgin Vie at Home, led by founding
    directors Ros Simmons and Ratan Daryani, acquired the cosmetics
    and skincare marketer from Virgin Group. The new owners closed
    Virgin Vie’s 15 bricks-and-mortar stores to focus on direct sales
    and by midyear had rebranded the business as Vie at Home.

  • Germany-based Bertelsmann sold UK mail order bookseller Book
    Club Associates to another German company, private equity firm
    and turnaround specialist Aurelius.

  • Urchin, a cataloguer of children’s toys and baby products,
    fell into liquidation.


February

  • Baugur, the Icelandic investment firm whose UK holdings
    included Hamleys, House of Fraser, Principles, Debenhams, and
    Mosaic, called in administrators PricewaterhouseCoopers in the
    UK. It also filed for moratorium-similar to falling into
    administration-in Iceland. Four of Mosaic’s brands-Coast, Karen
    Millen, Oasis, and Warehouse-were acquired the following month
    out of a prepack administration by a team of executives and
    Mosaic’s lender, Icelandic bank Kaupthing.

  • Littlewoods parent company Shop Direct Group acquired the
    Woolworths brand out of administration. It relaunched the
    retailer as an online-only seller in June.
    Cox & Cox Toy Box
  • Homewares and gifts cataloguer Cox & Cox acquired the
    majority stake in toys cataloguer Cowboys and Cupcakes, formerly
    Tridias. Cox & Cox relaunched the brand in autumn 2009 as Cox &
    Cox Toy Box.

  • Maternity wear cataloguer/retailer Blooming Marvellous was
    acquired out of administration by a consortium led by MK One
    cofounder Elaine McPherson, PanWorld Brands owner Mike Basso, and
    direct marketing veteran Jim McDowell.

  • Everything but the Music (EBTM), a marketer of music-inspired
    fashion, fell into administration. It was acquired two months
    later, however, by TKC Direct, the owner of skate and urban
    apparel cataloguer/retailer Route One.


March

  • The Hut Group bought home-entertainment retailer Zavvi and
    relaunched it as an online-only merchant. It also expanded
    Zavvi’s product line to include perfume, lingerie, and
    electricals.

  • Rocom, which sells telecom equipment via a print catalogue
    and the web, was acquired by rival distributor Nimans.

  • Natural Collection and Ethical Superstore, two direct
    merchants of eco-friendly goods, merged. Several months later
    Ethical Superstore, which had been online only, launched a print
    catalogue.

  • JD Sports debuted GettheLabel.com, a catalogue and online
    seller of discounted branded apparel.

  • Housewares cataloguer/retailer Lakeland introduced Lakeland
    Garden, a catalogue specialising in gardening and outdoor-cooking
    products.

  • Maternity fashion brand Isabella Oliver launched 365
    Collection, a catalogue and website selling nonmaternity
    womenswear.


April

  • Findel announced that it would shut toys cataloguer Letterbox
    and home decor title The Cotswold Company. Letterbox was
    subsequently bought by toys and novelties cataloguer/retailer
    Hawkin’s Bazaar, which relaunched the brand in the autumn. Findel
    also eliminated 60 positions as it incorporated the
    administrative functions of its Findel Direct business into its
    Express Gifts unit.

  • Homecraft Rolyan, a mailer of rehabilitation supplies,
    acquired physiotherapy and sports-medicine cataloguer Mobilis
    Healthcare. The combined businesses were subsequently reorganised
    under the name Patterson Medical, reflecting its ownership by US
    medical supplier Patterson Cos.


MayBloom

  • Silk-flowers cataloguer Bloom and Green was acquired out of
    administration by multititle mailer Scotts & Co, which relaunched
    the brand under its original moniker, Bloom.

  • Having sold Letterbox and folded The Cotswold Company the
    previous month, Findel put its Kitbag brand on the block as it
    sought to raise cash and reduce its debt. The etailer of licensed
    sporting gear was believed to be among Findel’s more profitable
    units.

  • Lands’ End became the first cataloguer to sign up for Royal
    Mail’s Sustainable Mail bulk mail service, which offers discounts
    to organisations that meet environment standards.


June

  • The Communication Workers Union (CWU) staged the first of
    what would become a series of rolling 24-hour strikes against
    Royal Mail throughout the summer. As was the case when the CWU
    conducted work actions against Royal Mail two years earlier, the
    carrier’s modernisation plans and possible job cuts were the
    primary issues.

  • After months of murmurs and seeking a government bailout,
    German conglomerate Arcandor filed for insolvency. Its businesses
    included the Quelle catalogue and the Primondo speciality
    catalogue unit, whose UK titles included Afibel, Elegance, and
    Peter Hahn. In October, having failed to find a buyer for its
    German Quelle business, Arcandor shut the division, but it
    continued to seek a buyer for Primondo.

  • Freemans Grattan Holdings folded its Montage catalogue,
    saying that its offering and market positioning were “too
    similar” to those of its Freemans and Grattan
    catalogues.

  • The Book People and Scholastic ended their partnership in the
    Red House children’s book club and the schools-based School Link
    book club. The Book People retained Red House, while Scholastic
    incorporated School Link into its UK book club business.

  • Creditors of Discover Leisure, a direct seller of camping and
    caravan gear, approved a Company Voluntary Agreement (CVA) that
    enabled the business to remain a going concern.

  • Ondrives, a cataloguer of manufacturing components, and
    competitor Rino Industries merged. The combined business is now
    operating under the Ondrives name.

  • Gifts and collectibles cataloguer Compton & Woodhouse was
    bought out of administration by Haroldrex Ventures, a new company
    led by Compton chief executive Mark Dugdale.


July

  • Shop Direct Group rebranded Littlewoods Direct as Very. The
    relaunched website included a number of social-networking
    features, and in addition to mailing a directory catalogue twice
    a year, Very launched a monthly traffic-driving magalogue.


August

  • Shop Direct launched LittlewoodsEurope.com, a website
    catering to consumers in France, Germany, Portugal, and Spain.


SeptemberHigh and Mighty

  • N Brown Group acquired assets of speciality-size menswear
    retailer High and Mighty out of prepack administration. The
    company relaunched the brand’s print catalogue in time for the
    holiday season.

  • Next unveiled a US website, NextDirect.com, and announced
    plans for a German-language site.

  • Disappointed with a lack of response from Royal Mail
    following a summer of rolling work stoppages, the CWU ballotted
    its members about conducting nationwide strikes against the
    postal service. In early October the union announced that its
    members had voted in favour of strikes, and the first three-day
    staggered walkout began a week later.


October

  • Speciality women’s fashion cataloguer/retailer Long Tall
    Sally acquired the US website and 10 Canadian stores of retailer
    Tall Girls.

  • Brady Corp, the US-based parent company of workplace supplier
    Seton, acquired Welco, whose three catalogues sell industrial and
    office supplies for schools, health facilities, and general
    workplaces. Welco’s former parent company, Welconstruct Group,
    had fallen into administration the previous month.


November

  • TP Toys, a cataloguer/retailer of outdoor toys, bought Muddy
    Puddles, a cataloguer of children’s outerwear.

  • Germany’s Otto Group acquired Quelle Russia from insolvent
    Arcandor as well as the rights to the Quelle brand and related
    brands for Germany and other Central and Eastern European
    countries.

  • The day before it was to begin the first of two
    “all-out” work stoppages, the CWU agreed not to
    conduct any more strikes against Royal Mail for the rest of the
    year.

  • Christian charity IBS-STL UK put its flailing Wesley Owen
    catalogue/retail division, along with wholesale business STL
    Distribution and publisher Authentic Media, up for sale.

  • Marks & Spencer announced that Morrisons chief executive Marc
    Bolland would succeed Sir Stuart Rose as chief executive,
    effective early 2010. Rose will remain chairman of M&S, however.

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