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Achica debuts fashion after BrandAlley purchase

Homeware and beauty etailer Achica has launched a clothing and footwear offering after designer sale website BrandAlley bought the business for £600,000, in a cash deal with Achica’s former parent company Dunelm Group.

BrandAlley CEO Rob Feldmann told Drapers that under the deal, BrandAlley has taken over Achica’s website, brand, IP assets, “some” stock and 33 staff as well as a database of more than two million members and customers.

Achica did not previously offer clothing. Meanwhile the deal will add 200 new beauty, homeware and furniture brands to the BrandAlley business. 

Dunelm Group will pay off all trade suppliers and other liabilities as part of the deal.

Feldmann said the merger will “accelerate BrandAlley’s growth”: “This deal will work really well for our brands and customers – we’re giving all our brand partners so many new customers who will discover them and [try them out] through us.

“It’s an amazing opportunity for us. We’re both UK online businesses and in terms of sales mix, BrandAlley is 90% fashion and 10% home; our home business has been growing quickly, but Achica is complementary in terms of product profile as [the vast majority of it] is homeware.”

He also pointed to similarities in its customer profiles, particularly with those based in London and the Southeast.

Feldmann said that after putting fashion onto the Achica website, BrandAlley saw “incredible uplift” for its Reiss and Hackett ranges in particular. BrandAlley and Achica will continue to run as separate websites for the time being.

He said: “You have to do these things gradually and carefully. But the initial results are really encouraging.”

The deal brings staff count at BrandAlley to 85 employees in London, with an additional 10 at its IT operations in India.

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