Cotton On Group invests in Upstate Studios to expand nationally

One is Geelong’s most recognisable brand. The other is an up-and-comer. This is the inside story of Cotton On’s investment in a Geelong business.

Cotton On Group’s investment arm will pump cash into a Geelong-based fitness studio and activewear retailer to expand the brand nationally.

The expansion plan for Upstate Studios, founded in 2009 in Geelong, will be supported by Cotton On’s innovation fund, and will centre on Victoria first then a national rollout.

Upstate will also focus on using “expertise and experience” at Cotton On to develop its national expansion plan.

Upstate co-founders and sisters Charelle Cuolahan and Gail Asbell. Picture: Supplied

Upstate operates six fitness studios in Victoria on top of its online fitness classes and its activewear apparel line Upstate Sport.

Cotton On Group Chief Financial Officer, Michael Hardwick, said its innovation fund was designed to focus on investments in technology, sustainability, wellness, social impact, and product innovation.

“If we can see a business purpose for a new or established idea, and we feel passionately about it and believe it will make a positive difference, then we are also willing to invest through the Cotton On Innovation Fund,” Mr Hardwick said.

“This was the case with Upstate, and we are thrilled to be backing two talented founders and entrepreneurs to support them with a national rollout.”

Gail Asbell, who founded Upstate alongside sister Charelle Cuolahan, said their customers wanted more than just physical workouts.

“We’re on a mission to help people find a positive state of mind through movement, connection and positivity and are driven to share this mission with as many people as possible,” Ms Asbell said.

“Our customer wants more than physical workouts; they want emotional and mental wellness. “That is exactly what Upstate is all about.

“We want our members to feel as though they have arrived at their happy place, and we believe health and fitness should be as fun as it is challenging.

“As female founders in a heavily dominated female industry, we feel passionately about providing full-time career opportunities for fitness professionals.”

Ms Asbell and Ms Cuolahan will continue to lead and manage the operations of Upstate.

Ms Asbell said Upstate’s offering which includes yoga, reformer pilates, boxing, hot pilates, and sound bath meditation was available at an “accessible price point.”

Upstate has a studio at Moorabool St, Geelong

“Our instructors are the heart of Upstate, and scaling our business means we can offer more pathways for more team members.

“This was a key factor in our decision to enter into this partnership with the Cotton On Group and as we work to scale our business.

“We could not be happier to align with the Cotton On Group, a company we’ve worked with locally in Geelong over many years, who are as excited about our mission as we are and will bring the expertise and experience to help us scale and roll out studios nationally.”

The Cotton On Group has eight brands, 1,500 stores, 18,000 staff and operates in 22 countries.

Detail on the amount Cotton On will investment in Upstate was not provided.

Originally published as Cotton On Group invests in Upstate Studios to expand nationally