While Hallenstein Glasson has enjoyed a strong recovery at the last annual report, its ‘high-end fashion’ brand Storm has consistently been a weak performer compared to Glassons and Hallenstein Brothers. Now, it’s been purchased by chief executive Deborah Caldwell.
Caldwell bought Storm through the newly-established Blackstar Holdings, which she owns. She established Storm under Hallenstein Glassons’ ownership in 2006 as “a fashion boutique to bridge the gap between high end fashion and chain stores.”
“We are excited to continue and further develop our strategic approach to deliver quality, unique fashion, retaining a boutique business model’, says Caldwell. ‘I am fortunate to have an energetic and dedicated team alongside me and we are passionate about the future of Storm.”
Caldwell did not disclose the cost of the sale.
Sales for Storm’s 2017 financial year were $8.34 million, a decrease of 11.24 percent on the previous year. Storm’s sales constituted 3.4 percent of Hallenstein Glasson’s 2017 financial year sales of $239 million.
Hallenstein Glasson board chair Warren Bell noted in the last annual report that Storm struggled to maintain sales momentum during the year, putting this down to “tough trading in a highly competitive segment of the market”.
Bell also blamed major infrastructure work around three of its four Auckland stores having a material impact on trade.
Storm’s one Australian store was closed in 2017 after the brand failed to take off across the Tasman. However, it replaced its Christchurch container store with a traditional shop, and also opened in Queenstown during the 2017 financial year.
The brand has a total of 10 stores. It will trade under Blackstar Holdings’ ownership from April 30.