Warsaw (Puls Biznesu) – The distributor of clothes for teenagers who was very popular four years ago has stopped developing its chain. The reason: the lack of funds. Mrowka is looking for an investor.
Mrowka Moda Mlodziezowa, the distributor of clothes for teenagers was selling its products in 200 shops in 2002. Now, the clothes are available in 80 shops, including two ones owned by Mrowka. Sales are very low: last year they amounted to PLN 1.4m (EUR 355,000), this year they may grow to PLN 2m. The company lacks funds to develop.
“We are looking for investors by our own and via a company hired for this purpose”, Filip Wojciechowski the co-owner of Mrowka and six private shops selling its products, said.
The experts do not say it straight whether Mrowka brand, which is not particularly popular, will find an investor.
“Brands which are well managed and have potential may find an investor even if they have transient problems. Smaller brands will not find investor as easily as several years ago. There is not enough space on the market for everybody”, Grzegorz Koterwa, the member of Artman clothes producer and distributor said.
“It’s worthwhile investing in a brand if it has shops in good places. Otherwise the costs may be very high but it is possible. But personally I’d rather create a completely new brand”, Jerzy Garczynski, the deputy CEO of the Polish Chamber of Clothes and Textiles Industry said.
Mrowka would welcome an investor from the same sector, e.g. listed Artman or LPP. At first, the company would need PLN 1.5m of cash injection.
“We have so much to do that we are not interested in any acquisitions”, Dariusz Pachla, LPP deputy CEO said.
(PLN 1 = EUR 0.254)