Both sales and profits fell at British accessories firm Cambridge Satchel Company last year, as the firm “lost its way” and tried to grow too quickly.
Cambridge Satchel Company men’s store
Revenues dropped 25% to £7.5m in 2015, while the firm made a loss of £5.4m, compared to a profit of £1.4m the year before, according to The Telegraph.
Founder Julie Deane told the newspaper the business had “lost its way” and had invested too deeply in increasing factory capacity ahead of demand, as well as hiring “expensive” senior management, following a £12.7m investment from Index Ventures.
In order to regain control of the firm Deane has since made 13 people redundant.
The business is now looking towards China for growth, where it sells on Tmall, as well as launching new product lines including wallets, iPhone covers, and new bag shapes.
Deane expects sales for 2016 to be up 250% on last year, as by the end of January this year the business had already surpassed the whole of 2015’s turnover.