Samworth Brothers will shut down its sports activities vitamin arm Sci-Mx after being unable to drive the enterprise it acquired in 2015 to profitability.
AIM-listed Supreme Imports has acquired the rights to make use of the model identify and £1.4m of warehouse inventory as a part of Samworth’s exit from the class.
A Samworth Brothers assertion mentioned the Sci-Mx enterprise would shut on 31 July following the conclusion of a current session because the enterprise “has been loss-making for a number of years, regardless of robust ranges of funding and a extremely dedicated staff”.
It acknowledged: “We have concluded that the enterprise will not be at a scale the place we are able to make it work and the degrees of funding that may be wanted to attain this don’t make good financial sense.”
The Ginsters proprietor continues to seek the advice of with Sci-Mx workers on redeployment to different Samworth enterprise places.
Supreme will fund its buy of the Sci-Mx manufacturers and inventory, for an unspecified sum, from current money.
It mentioned the acquisition would add “numerous main and long-established retail manufacturers” to its rising sports activities vitamin enterprise and allow it to leverage the Sci-Mx and Pro2Go manufacturers to develop current relationships with retailers and cross-sell the manufacturers into its current consumer base.
In addition, to assist the continuing robust progress in its sports activities vitamin phase, Supreme has secured a 52,000 sq ft manufacturing and distribution facility one mile from its current Trafford Park website.
Supreme CEO Sandy Chadha commented: “The acquisition not solely broadens our product providing and delivers additional scale to this phase, but in addition leaves us ideally positioned to create further gross sales traction throughout our intensive retail footprint in what’s changing into an ever extra vital class for the group.”
Supreme listed on AIM earlier this yr and provides fmcg items, together with vaping merchandise, lighting, batteries and sports activities vitamin and wellness items.
