Following the successful acquisition of Bevilles earlier this year, five additional retailers have reportedly approached Michael Hill International about the possibility of a sale.
In April, the details of a $45.1 million between Michael Hill and Bevilles were made public, with CEO Daniel Bracken outlining plans for expanding the store network.
According to a report from The Australian, Michael Hill has since been approached by five other jewellery and watch retailers to discuss the potential for further acquisitions.
Three of those five retailers to propose a sale are from Australia, and two are located abroad.
“It lines up with observations from insolvency specialists over the various investment cycles that tell this column that when the market enters a downturn, jewellery, footwear, and menswear stores are first to feel the heat,” writes Bridget Carter of DataRoom.
“Michael Hill’s motive for its recent acquisition has been to gain a share of the jewellery market right from the luxury to the discount end, as its flagship brand, Michael Hill, pushes towards the higher end of mid-market shoppers.”
In August, Michael Hill announced the upcoming launch of TenSevenSeven, a new high-end jewellery brand focusing on personalised diamond rings.
Michael Hill’s sales increased by 5.8 per cent to $629.6 million in the past financial year. The company operates 275 stores in Australia, New Zealand, and Canada.
More reading
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Done deal: Michael Hill takeover of Bevilles complete
Michael Hill and Bevilles: History never repeats itself, but it does often rhyme
