A former BabyCo supplier has purchased the collapsed retail chain for an undisclosed amount and plans to expand the business over the next six months.
Accountant Edwin Haryanto, who purchased the chain through investment company Australian Yarn, says he bought the business due to his familiarity with the brand. A purchase price was not disclosed.
Haryanto also owns manchester business Goodie Goods, which has acted as a supplier for BabyCo over the past five years. He was previously a manager at Hall Chadwick, and also operates Melbourne-based accountancy firm Accounting House.
“I wanted to keep the brand alive and keep competition up in Australia,” he says. “Australian Yarn is set up as a company… I just capitalise the business, make sure everything is okay. I will be expanding in the next few months, opening up two new stores.”
While 16 of the chain’s original stores were closed when the company collapsed in August 2009, 45 employees at the six remaining stores will retain their jobs. Haryanto has earmarked Newcastle and Preston as the sites for the new stores.
The six current stores are located across four states with Rowville and Knox in Victoria, two stores in Wetherill Park in New South Wales, Underwood in Queensland and St Mary’s in South Australia.
“This is a good business to have, and I know about the brand already,” Haryanto says.
“As for now, our plans are just to make sure everything is running fine, and then in the next six months open up the two new sites. We will fix everything up and then go from there.”
Accountancy firm Deloitte said its partners Tim Norman, Simon Cathro and Sal Algeri negotiated the sale of the company, with an agreement reached on January 18.
Last August, Norman said the collapse of the company was due to “slowing sales and the competitive nature on the retail industry”.
But yesterday he said the liquidators have managed to continue the business during the period of sale, and have completed a “significant number” of outstanding customer orders.
“The new owners’ existing retail and wholesale experience should provide a foundation for their plans to continue to operate the six open stores. It is our understanding that the additional stores that have been closed temporarily during the administration will also be reviewed by the new owners,” Norman said in a statement.
Deloitte did not return calls before publication.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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