Brandalley to buy Cocosa from MySale
today May 3, 2019
MySale Group has finally made its mind up what it will do with the UK-based Cocosa operation - it’s selling it. The company has entered into an unconditional agreement to sell the trade and assets of the website to Brandalley UK Limited.
Cocosa is MySale’s main trading website in Britain and the disposal is part of the rationalisation programme the company had announced as it works to get back to full health. Part of that rationalisation will see the group increasingly focusing on its Australia and New Zealand (ANZ) business.
Brandalley is paying only £1.5 million, in cash, for the asset, with the deal set to complete on May 9.
The company is buying an operation that’s one of the more buoyant parts of the MySale set-up, although it’s still loss-making and relatively small in the grand scheme of things. The wider company made a loss last year as revenue fell 17%, but the UK operation saw sales rising 10% to A$9.5 million and gross profit was up 9%. It accounted for 5% of gross revenue for the company as a whole but its pre-tax loss was A$0.4 million.
CEO Carl Jackson said of the sale: “This disposal represents a key step in accelerating our 'ANZ First' strategy, which looks to optimise our scale, resources and market position in the region. With this more streamlined and focused approach, we can provide an improved offering for both our customers and brand partners."
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