Myer revamp gives fashion brands a new lease on life

Myer will inject much-needed innovation, vitality and creativity into its struggling Sass & Bide label.

Julie Ann Morrison, left, and Karen Brewster. Picture: Luis Enrique Ascui

Myer will inject much-needed innovation, vitality and creativity into its struggling Sass & Bide label after combining it with newly acquired brands Marcs and David Lawrence to form a division called Specialty Brands Australia and chaired by the former boss of Bulgari UK, Julie Ann Morrison.

Joining Ms Morrison on the board is Myer’s general manager of merchandise buying, Karen Brewster, who has been dressing the men and women of Australia for the past 20 years in a range of roles at the department store and who now, as a director of Specialty Brands, will help oversee the three key fashion labels.

Ms Morrison has a management consulting background, is on the advisory board of Carla Zampatti and had a stint with French giant LVMH Group, where she led Bulgari UK as well as the Australian arm between 2012 and 2014. She will report directly to Myer chief executive Richard Umbers.

Also on the new board is Myer chief financial officer Grant Devonport.

The restructure and formation of Specialty Brands was triggered in July, The Australian can reveal, and the new board will be the lead for Myer’s latest specialised and innovative structure for nurturing and developing Australian fashion brands.

Myer believes the Specialty Brands structure will provide a level of independence and specialty retail expertise to develop the potential of Sass & Bide, as well as Marcs and David Lawrence. Under the new structure, each brand will continue to be run by their respective managing director and executive teams, but will now report to the Specialty Brands board.

“In establishing Specialty Brands Australia, Myer recognises the best model for a large company to own distinctive brands forged with an entrepreneurial spirit — the benefits of some operational synergy but the dedicated strategic and creative resources specific to a brand’s DNA and marketplace,’’ Ms Morrison told The Australian.

“I know from my experience of working with Bulgari after it was acquired by LVMH that leading brands can thrive within a broader corporate group.”

Sass & Bide, however, has not thrived under Myer’s ownership. Myer bought a 65 per cent stake in Sass & Bide in February 2011 for $42.3 million, later snapping up the remaining 35 per cent for about $30m.

In July, when Myer unveiled its shock profit downgrade, it warned that challenging trading conditions for Sass & Bide since the first half and a reassessment of its carrying value would spark an impairment charge of $38.8m.

“These are all brands that are distinctive in their own way, but the skills to manage and develop these brands are common brand management skills, so it makes sense we have an independent vehicle to really manage and develop their potential.”

Ms Brewster said she brought 20 years of experience with fashion brands to the new Specialty Brands board. “So much of the value in a fashion brand lies within the design, product and marketing teams.”