Sir Philip Green-backed MySale sells Cocosa to BrandAlley for £1.5m
The sale marks part of MySale Group’s plan to exit Britain to focus on its core markets in Australia and New Zealand.
MySale, the online group backed by Sir Philip Green and Mike Ashley, has sold British website Cocosa.co.uk in a £1.5 million deal to fashion retailer BrandAlley.
The business was the group’s main British trading website, and the sale marks part of its plan to exit the region to focus on its core markets in Australia and New Zealand.
The sale of the members-only shopping platform is set for completion on May 9.
In the financial year to June 2018, Cocosa delivered revenues of 15.7 million Australian dollars (£8.4 million), approximately 5% of total group revenue, and incurred a pre-tax loss of 400,000 Australian dollars (£215,000).
Retail analyst Nick Bubb said: “The beleaguered Philip Green has much bigger things to worry about than the fate of his investment in the struggling Australian-based online retailer MySale, but it’s worth noting that back in 2014 at the time of the IPO MySale was bullish about its UK growth prospects.
“Today, however, MySale has announced that it has sold its main UK asset.”
Launched in 2007, MySale group runs 23 websites in eight countries, including MySale in the UK.
Its UK and South East Asia region had accounted for about 15% of group sales, prior to the disposal.
Its direct retail websites are Deals Direct, OO.com and Top Buy in Australia and Identity Direct in Australia and New Zealand.
The group floated in the UK in 2014, when Sir Philip bought a 25% stake in the firm, while Sports Direct owner Mr Ashley took a 4.8% holding.
Chief executive Carl Jackson said: “This disposal represents a key step in accelerating our Australia New Zealand First strategy, which looks to optimise our scale, resources and market position in the region.
“With this more streamlined and focused approach, we can provide an improved offering for both our customers and brand partners.”