Home / Knowledge / News / Textiles / Dawson continues to supply Dunelm with Dorma brand
Dawson continues to supply Dunelm with Dorma brand
08
Aug '08
Dawson International PLC announces that it has entered into an agreement to sell the Dorma trademark and associated rights to Dunelm Group plc (“Dunelm”) for a cash consideration (“the Consideration”) of £5 million.

The sale is conditional on the release of security over the trademark and associated intellectual property rights by the Company's lenders, which is expected within the next 14 days.

In conjunction with the sale agreement, the Company has entered into a trading agreement in terms of which Dawson will continue to supply Dunelm with Dorma brand and own-brand bed linen for an initial period of four years with certain minimum guarantees. Dunelm has also granted the Company a licence to use the Dorma brand until January 2011.

At the end of this period Dawson will cease supplying Dorma branded products to third parties other than Dunelm.

As a consequence of entering into this agreement the Company will incur costs of exiting its Dorma Branded business by January 2011. The final amount of the cash cost is uncertain due to the length of time involved but is currently estimated at not more than £3.3 million. The net consideration will be used to reduce debt. The Dorma Branded business currently employs approximately 420 staff, with the vast majority of these working in its retail concessions.

In the year ended 29 December 2007, the Dorma Branded business recorded an operating loss, inclusive of central overheads, of £3.6 million. The trademark and associated intellectual property rights, which are the subject of the sale, were carried at nil value in the balance sheet.

Andy Bartmess, Chief Executive commented:
“Dawson acquired Dorma Group Limited in February 2005 and restructured it into separate Dorma Branded and Private Label businesses. The overall results of Dorma Group have improved significantly since acquisition however while the Private Label business is now growing and trading profitably the Dorma Branded business, although much improved, continues to trade at a loss reflecting a decline in some of its traditional markets such as mail order and independent retailers.

This transaction enables us to focus on the growth area of the business and generates cash both through the net consideration for the brand and the liquidation of working capital. It also further strengthens our relationship with one of our major Private Label customers.”

Dawson International PLC


Must ReadView All

Apparel/Garments | On 25th Jun 2017

Half of 7,000 new apparel online each day target women

Adobe has released its first Digital Price Index for apparels,...

Textiles | On 25th Jun 2017

First Insight, Chico's FAS enter partnership

First Insight, a technology company transforming how retailers make...

Apparel/Garments | On 25th Jun 2017

Expand changing use of social and web resources

With over 400 million impressions to date and web traffic of over two ...

Interviews View All

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search