Accessories supplier Elite Creations has acquired rival Phase Two Accessories to create a £20m supply powerhouse.
Elite Creations, which supplies retailers such as Inditex and imports direct from China, has bought Phase Two, a women’s accessories supplier to retailers like River Island and Jane Norman, to create one of the UK’s largest accessory supply groups. The value of the deal is unclear.
The deal will give Elite greater scale and negotiating power with factories and allow the business to gain a foothold in the young fashion high street accessories market.
Phase Two was founded by former New Look executives Lisa Wood and Alan Wood. It is understood to have been hit by the recession.
Wood will stay on at the business on a consultancy basis until the end of the year, and will help devise a strategy to increase Phase Two’s turnover from £5m to £7.5m by the end of 2011. “They reached a stage where they didn’t want to continue,” said Elite Creations chief executive Nitesh Sakhrani.
“The last few years have been tough for the middle man and for us the deal made sense. It is a great addition to the portfolio; it makes Elite a more solid supplier.”
Phase Two will continue to be run from its Fulham headquarters in Southwest London until later this year, when the combined group will move to a head office and showroom in Willesden, northwest London.