Menkind acquires RED5
Menkind, the multi-channel niche gifts and gadgets retailer, has acquired RED5, the Hull-based consumer gadgets brand.
RED5 and Menkind will continue to operate as separate brands following the acquisition. In addition, Menkind will retain RED5’s existing stores, warehouse and offices, as well as its 220 staff.
Founded in 2005 by Gadget Shop creator Jonathan Elvidge and Joth Baron, RED5 reported sales growth of 18% with a turnover of £18 million at the end of the 2015 financial year. Pre-tax net profit was £1.3 million.
RED5 currently has nine permanent UK stores and four concessions in Hamley’s and Selfridges, in addition to a number of pop-up stores. It also sells product via its website www.RED5.co.uk and via wholesale to stores including Boots, Argos and John Lewis.
Both Elvidge and Baron will remain actively involved in the business during the transition period as consultants to the management team.
Paul Kraftman, chief executive and founder at Menkind, said: “We are delighted to have acquired RED5, which has huge credentials within the gadgets arena, and until now was a main competitor of ours.
“Both Menkind and RED5 have distinctly different propositions and customer bases, which each brand owns within its section of the market. Whilst RED5 tend to attract younger buyers, Menkind’s wider gifting range appeals to the more mature customer. We feel this acquisition is key to the continued growth of Menkind, and anticipate it helping us to increase our market share and accelerate our expansion.
“Our vision is to be the brand leaders in our niche markets, increase our store portfolios in the UK and expand internationally. We feel, with the acquisition of RED5, we can confidently achieve this with both brands.”
Menkind employs 450 staff and has 40 stores across the UK. It also has 20 seasonal pop-up stores planned for the Christmas season, and also sells via www.menkind.co.uk.
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