Frasers Group, a company known for its frequent acquisitions, has recently made another purchase by acquiring designer fashion retailer Psyche. The details of the deal have not been disclosed to the public. Psyche currently operates a 40,000 sq ft store in Middlesbrough, alongside its online platform, and employs a total of 58 individuals. The retailer boasts an impressive collection of around 200 high-end brands for both adults and children, including notable names such as Barbour, DSquared, Belstaff, Boss, Kenzo, Champion, and APC.

Although this acquisition may seem relatively small for Frasers Group, it aligns with their overall strategy of acquiring businesses that have the potential to contribute to their future growth. The company is eagerly waiting for the outcome of their bid to acquire Debenhams, a deal that holds significant implications for the expansion plans of Frasers Group.

The decision to sell to Frasers Group seems to have been driven by the challenges faced by the fashion retail industry in recent years. Psyche’s founder and CEO, Steve Cochrane, has been successfully running the business for an impressive 38 years. However, as reported by the BBC, the company has been greatly impacted by store closures during multiple lockdowns and the shifting consumer behavior. Cochrane explained that despite rejecting a takeover offer back in 2017, he reconsidered the option due to the immense pressures faced by physical retail, including the rise of online shopping, uncertainties surrounding Brexit, and the ongoing global pandemic. Cochrane firmly believes that selling to Frasers Group will secure the future of Psyche’s staff.

The long-term future of the Psyche brand under its new ownership remains uncertain. Frasers Group has been rapidly expanding its upscale Flannels chain, leading to ambiguity regarding the potential coexistence of both brands in the long run. Cochrane mentioned that Frasers Group will conduct a thorough evaluation over the next six to twelve months to determine how well Psyche fits into their retail offering. He also raised the possibility of the store on Linthorpe Road continuing to exist in a few years, but whether it will retain the Psyche name is uncertain.

Useful Links:
1. Frasers Group Official Website
2. Psyche Official Website