BBRC Worldwide

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BBRC is a private investment company founded by Australian businessman Brett Blundy.

History

1980s

In 1980, 20-year-old Brett Blundy and a business partner he met from school bought two rundown record stores called Disco Stick. They immediately closed one, combined the stock into the Pakenham store (situated in a small shopping arcade) and reopened as Jetts, selling vinyl records and cassettes. The lease for this store was for a three-year period, but it was losing money from day one. Blundy and his partner found another unloved record store a year later, this time within a bigger shopping district at Parkmore Shopping Centre, Keysborough, supported by a larger surrounding population. Before they purchased it, the Parkmore store was turning over $2,000 a week, but six months later as a Jetts outlet, it had increased to $15,000, and was subsidising the failing Pakenham store which was closed once the lease had expired. The Parkmore outlet lasted until 2010 under the Jetts, Delta, and Sanity branding.[1][2][3]

In 1986, Blundy and his business partner went their separate ways with Blundy selling his 60% stake in the eight-store Jetts chain to his former partner for $600,000. This left Blundy to pursue an idea he had three months before the Jetts sell-off, after he noticed one of his "fashionable" female store managers kept wearing a broken bra, held together with a safety pin. Knowing that most lingerie at that time were beige in colour with unflattering cuts, he wanted to sell underwear in various cuts and colours, alongside G-strings that were unheard of for casual wear. Three months later, he took out his first franchise in The Bra Shop chain at Chirnside Park Shopping Centre, mainly selling brand name product, but gradually sourcing different lines independently of the franchise (his first run of 15 G-strings sold out in one day). Bryan Luca, the franchisor of The Bra Shop, entered into an agreement with Blundy to buy his three Victorian stores in exchange for Luca's four underperforming Bras N Things outlets in New South Wales and a guarantee to not trade in Victoria. Brazin Limited officially commenced operation after Blundy expanded Bras 'N' Things into South Australia and then Queensland.[2][3][4][relevant?]

1990s

In 1990, Brazin Limited bought back the failed Jetts chain from the liquidators at a discount and began to progressively rebrand them as Delta music stores. Also in that year, with Bras 'N' Things expanded to 60 stores around the country, Bryan Luca started to progressively sell his remaining Victorian Bra Shop outlets to Blundy in groups of six at a time with all eventually being sold and renamed to Bras 'N' Things[2][3][4]

The Sanity concept and brand was established and introduced by Brazin in 1992 with its first store at Doncaster Shoppingtown. This occurred by chance thanks to Blundy's working knowledge of Doncaster Shoppingtown, as – while running his five-store company in the late 1980s – he worked as a casual shop assistant in its Just Jeans store to learn more about its culture and internal processes. When he found out the centre's only record shop closed without notice he brazenly talked his way into that lease with the centre manager, even though it was earmarked for another music retailer (that store ceased trading in 2010). Also in that year, Blundy's company started the designer, marketer and distributor (no shopfronts) of women's surfwear brand, Aztec Rose.[2][3][5][6]

In 1997, the company acquired 14 CC Records outlets in Victoria, folding them into the Sanity/Delta network. Brazin Limited also listed publicly with the Australian Securities Exchange in December of that year with an initial public offering at $1.50 a share. Blundy retained a 62% stake in the company.[3][4]

In June 1998, it acquired 27 outlets from the Brashs music chain on its demise via its administrators, KPMG, and the two remaining stores from Blockbuster Music in Pitt Street, Sydney, and Chapel Street, Melbourne – relaunching all of them as Sanity music stores on an ongoing basis (with staff, leases, etc. continuing at each store). After these acquisitions, Sanity and Delta had 148 outlets combined with Brazin publicly stating their aim was for 250 nationwide. The share price was now up to $2.29.[4][7][8][9]

In September 1998, Brazin introduced IN2 Music stores by converting three Delta outlets in North Queensland and outer Melbourne. Like Delta, IN2 Music targeted a wider demographic than Sanity's focus on the youth 16-26 age group, giving Brazin more scope after the collapse of adult-orientated chain, Brashs. IN2 Music expanded the next year after the company purchased a further 23 CC Records stores in South Australia and Queensland, and re-branded more Delta outlets.[4][10]

In May 1999, the company created Viva Lingerie, targeting a different demographic to Bras 'N' Things – the former, focused on young, price-conscious women.[11][12] Also in that year, Brazin acquired another 9 lingerie retail stores from Triumph International.[4]

2000s

  • March 2000: Brazin, which owned Sanity Entertainment, entered the digital music download market with a deal with Festival Mushroom Records. This move sparked industry controversy and threats of boycotts by rival retailers. Eventually, Festival Mushroom backed down.[13][14][15]
  • June 2000: Brazin opened the Gosh Coffee chain with an aim of 50 outlets within the year and ultimately reaching 200 to 300 nationwide.[16] The store count at the end of June 2000 saw Sanity contain 233 outlets, and Bras 'N' Things with 120.[17]
  • January 2001: Ian Duffell became CEO, with Brett Blundy moving to strategic development. However, leadership changes continued with Blundy and Duffell swapping roles eight months later. Duffell remained a director until April 2003.[18][19][20]
  • October 2001: Brazin expanded into the UK by acquiring Our Price music stores from Richard Branson's Virgin Group. Brazin also re-established the Virgin Megastore in Australia.[21] In Australia, Brazin re-established the first Virgin Megastore, in Chapel Street's The Jam Factory shopping centre, in April 2002.[22][23][24] By the end of this year, Brazin sold out of its loss-making Gosh Coffee 16-store chain (of which, six were sold to Freshfood Hospitality Pty Ltd with three still in operation today), and City Live nightclub at Fox Studios in Sydney.[25][26][27]
  • November 2002: Brazin acquired additional British VShop music and mobile phone stores. The company shifted Sanity UK's headquarters from Our Price's central London offices to Alperton. The new British outlets and overall company operating profit rose to $22.1 million with Sanity-branded outlets then numbering 291 in Australia.[28][29]
A Sanity outlet within Westfield Fountain Gate
  • June 2003: Blundy's Yoda Holdings attempted to privatize Brazin but withdrew the bid.[30][31]
  • August 2003: Brazin acquired a 50% share in EzyDVD, and a footwear company called Ghetto from Blundy's Yoda Holdings.[4][32] Also in this month, Greg Milne was appointed CEO, leaving Blundy to again move down to head strategic development.[18][33][34][35]
  • September 2003: Brazin sold all 118 Sanity UK stores (the rebranded Our Price and VShop stores) due to higher expectations not being met.[36][37]
  • July 2004: Brazin entered into an agreement with Coles Myer to open 62 Virgin concept stores within the Myer department store chain. These concept stores were marketed separately to stand-alone Virgin Megastores and were branded Virgin at Myer.[23][24][38]
  • October 2005: Brazin acquired the Australian operations of HMV, becoming a major player in the entertainment retail market.[38][39] Also in October, Brazin officially launched its Pulse loyalty card after a year of testing in the market. It worked by giving the customer one point for every dollar spent across the Sanity/Virgin/HMV/IN2 Music/EzyDVD/Bras 'N' Things/Dusk/Diva/Ghetto/Insane store network, receiving a $5 discount voucher or other offers once 100 points were reached.[40] Earlier in 2005, Brazin dropped the underperforming Ghetto and Insane chains while picking up women's fashion accessories retailer, Diva.[3][41][42]
  • February 2006: Brazin rolled out in-store kiosks where customers could select their own songs to either burn on a CD or download directly into an MP3 player. Fast Tracks Kiosks were initially installed in Sydney's Sanity/Virgin/HMV stores.[43][44]
  • May 2006: the company's 344-store network, Sanity/Virgin/HMV, withdrew sales data from the ARIA Charts, with Brazin CEO, Greg Milne citing the need for more updated day-to-day charts over ARIA's reliance on weekly information. Six months later the company resumed data collection for ARIA. At that stage, Brazin's Entertainment Division included 254 Sanity, 22 HMV, 6 Virgin Megastores, and 62 Virgin at Myer stores. Some record label executives estimated their combined music retail market share at between 28% and 35%.[45][46][47]
  • November 2006: Brett Blundy, Brazin's founder and majority shareholder, used BB Retail Capital to purchase the remaining 37.6% stake in Brazin and took it private with approval from Brazin's board and remaining shareholders.[4][48][49]
A Sanity outlet within the Watergardens Town Centre, this store closed in July 2013
  • November 2007: BB Retail Capital acquired an 80% stake in Adairs, a specialty retailer owned by the MacLean family. At the time, Adairs was operated 90 stores.[50]
  • March 2008: Sanity launched an online music subscription service in partnership with Microsoft called LoadIt but had to scrap it due to competition and other issues.[51][52] By the end of 2008, BBRC sold its controlling interest in Bras 'N' Things to ANZ and IMF Investors.[53][54]
  • September 2009: Brett Blundy sold BBRC's Entertainment Division, including the remaining 238 Sanity/Virgin/HMV store network, in a management buy-out led by Ray Itaoui, BBRC's head of entertainment. Still retaining its Milperra headquarters, Sanity Entertainment became a private company in its own right. As a result of the split, Pulse cards could only be used in BBRC's remaining store portfolio of Dusk, Diva, and Adairs.[55][56]

2010s

In November 2013, Sanity owner, Ray Itaoui, together with Blundy, each bought 50 per cent stakes in Bras 'N' Things, from private equity consortiums, ANZ and IMF Investors. Announcing the deal, Blundy said to the media, "Today, more than ever, I believe in Bras 'N' Things and our business model. I believe in our customer and I believe in our people." Asked about Itaoui, he added, "Ray has done a remarkable job with Sanity. We have always worked well together and I'm excited about our next venture taking Bras 'N' Things to the next level."[53][54][57]

In February 2018, Bras 'N' Things was sold to Hanes Australasia for an estimated AU$500 Million.[58]

References

  1. ^ "Senior Management Team: Brett Blundy". BB Retail Capital. Retrieved 9 July 2012.
  2. ^ a b c d Kelly, Brett (2012). "Brett Blundy". Business Owners' Wisdom: Great Business Owners Share Their Stories. Clown Publishing. ISBN 978-0-980776-53-9.
  3. ^ a b c d e f Schmidt, Lucinda (30 January 2013). "Meet Brett Blundy, Flogger of Lingerie, Jewelry, Adventure and Pies". Forbes. Retrieved 1 March 2013.
  4. ^ a b c d e f g h "Brazin Limited: Independent Expert's Report (1 December 2006)" (PDF). Deloitte. Retrieved 22 September 2012.
  5. ^ "Sanity Entertainment: About Us". Sanity Online. Retrieved 19 May 2012.
  6. ^ "A Cisco Virtual Private Network records massive savings for Sanity Entertainment's chain of music stores" (PDF). Cisco. Retrieved 22 May 2012.
  7. ^ "Brazin breaks the bank (19 June 1998)". Intelligent Investor. Retrieved 23 May 2012.
  8. ^ "Brazin plays a sweet tune (26 February 1999)". Intelligent Investor. Retrieved 23 May 2012.
  9. ^ Cresswell, Ellen (22 April 1998). "Brazin acquires Brashs". ARN. Retrieved 22 March 2013.
  10. ^ Eliezer, Christie (5 September 1998). "Oz's Sanity Bows Adult-Oriented Chain". Billboard. Retrieved 23 March 2013.
  11. ^ "Brazin Limited (7 May 1999)". Intelligent Investor. Retrieved 23 May 2012.
  12. ^ "Brazin outperforms, but is it under-priced? (27 August 1999)". Intelligent Investor. Retrieved 23 May 2012.
  13. ^ "News Corp Unit, Sainty.com Plan Online Deal". Telecompaper. Retrieved 22 May 2012.
  14. ^ Adcock, Bronwyn (9 March 2000). "ABC Radio PM: HMV boycotts the Festival Mushroom Group". PM. Retrieved 22 May 2012.
  15. ^ Donovan, Patrick (17 March 2000). "New Deal Sounds Better To Retailers". The Age. Retrieved 22 May 2012.
  16. ^ "Brazin Limited (16 June 2000)". Intelligent Investor. Retrieved 27 May 2012.
  17. ^ "Brazin Overview". Intelligent Investor. 14 December 2014. Retrieved 29 March 2015.
  18. ^ a b Jackson, Allison (6 August 2003). "Brazin's founder hands over reins". Sydney Morning Herald. Retrieved 7 June 2012.
  19. ^ "Australia: Lingerie Retailer Brazin Reveals Reshuffle (21 January 2002)". Just Style. Retrieved 7 June 2012.
  20. ^ Todd, Mark (10 April 2003). "Brazin hits new low on 65% profit cut warning". Sydney Morning Herald. Retrieved 7 June 2012.
  21. ^ "BBC News: Virgin sheds Our Price stores". BBC News. 18 October 2001. Retrieved 22 May 2012.
  22. ^ Lawson, Annie (16 April 2002). "Virgin plays to youth in rebirth of music Megastores". The Age. Retrieved 23 September 2012.
  23. ^ a b Wood, Leonie (28 July 2004). "Brazin to call tune in Myer stores". Sydney Morning Herald. Retrieved 19 May 2012.
  24. ^ a b Wiland, Eva (29 July 2004). "Myer, Brazin in Virgin Entertainment deal". MuzInk.com. Archived from the original on 9 March 2011. Retrieved 20 May 2012.
  25. ^ Todd, Mark (8 October 2001). "Brazin brews up sale of Gosh Coffee chain". Sydney Morning Herald. Retrieved 27 May 2012.
  26. ^ Jackson, Allison (17 July 2003). "Brazin decides to change its tune yet again". The Age. Retrieved 27 May 2012.
  27. ^ Team, Editorial (7 December 2001). "Australia: Brazin music company sells six Gosh Coffee outlets, in talks for sale of rest". Just Food. Retrieved 10 October 2012.
  28. ^ "Sanity set to roll out stores from London". Music Week. 20 April 2002. Retrieved 22 May 2012.
  29. ^ Todd, Mark (23 August 2002). "Brazin lifts its profit in Virgin territory". Sydney Morning Herald. Retrieved 18 June 2012.
  30. ^ Wood, Leonie (6 March 2003). "Brazin music earnings out of tune". The Age. Retrieved 7 June 2012.
  31. ^ Jackson, Allison (4 June 2003). "Blundy wants to reclaim Brazin at 78c". Sydney Morning Herald. Retrieved 26 May 2012.
  32. ^ "Brazin Limited Media Release: Independent Expert Determines Ghetto Acquisition 'Fair And Reasonable'" (PDF). CommSec. Retrieved 20 May 2012.
  33. ^ Wood, Leonie (10 April 2003). "Brazin suffering in Sanity". The Age. Retrieved 20 May 2012.
  34. ^ Cant, Sue (22 August 2003). "After sex and rock'n'roll, a Brazin attempt on DVD". The Age. Retrieved 20 May 2012.
  35. ^ "EzyDVD is 50% acquired by Brazin". Telecompaper.com. Retrieved 20 May 2012.
  36. ^ Brandle, Lars (6 July 2009). "Evelyn Barry Departs Sanity Entertainment". Billboard. Retrieved 19 May 2012.
  37. ^ "Brazin sells Sanity to Primemist Ltd". Music Week. 24 September 2003. Retrieved 26 June 2012.
  38. ^ a b Eliezer, Christie (28 September 2005). "HMV Sells Australian Stores To Brazin". Billboard. Retrieved 23 January 2013.
  39. ^ Breaking News, AAP (28 September 2005). "Brazin to buy HMV music stores for $4m". Sydney Morning Herald. Retrieved 19 May 2012.
  40. ^ Visible Results Solution, "Australian Retail's Most Innovative And Dynamic Customer Loyalty Program" Says Brazin Limited CEO | Visible Results Archived 20 May 2013 at the Wayback Machine
  41. ^ Irvine, Jessica (24 August 2005). "Streetwise Brazin looks to the future". Sydney Morning Herald. Retrieved 20 May 2012.
  42. ^ "The New Oil?" (PDF). Australian Investment Review. Archived from the original (PDF) on 20 March 2012. Retrieved 20 May 2012.
  43. ^ Ramsay, Randolph (16 February 2006). "Sanity unveils digital music kiosks". CNET. Retrieved 24 May 2012.
  44. ^ Sams, Christine (19 February 2006). "Number's just about up for CDs: retailer". Sydney Morning Herald. Retrieved 25 January 2013.
  45. ^ "Brazin splits from ARIA (29 May 2006)". ZGeek. Archived from the original on 10 February 2013. Retrieved 2 June 2012.
  46. ^ Mezack, Mary (9 October 2006). "Short Stories: ARIA Loses Sanity, Keeps Grip on Charts". Vaty. Archived from the original on 13 December 2013. Retrieved 2 June 2012.
  47. ^ Eliezer, Christie (11 December 2006). "Brazin Data Returns To Aus Charts". Billboard. Retrieved 2 June 2012.
  48. ^ Ooi, Teresa (18 November 2006). "Let Brazin nurse its wounds in private, says Blundy". The Australian. Retrieved 24 May 2012.
  49. ^ Breaking News, AAP (3 November 2006). "Brazin board supports BB Retail takeover". Sydney Morning Herald. Retrieved 19 May 2012.
  50. ^ Breaking News, AAP (28 November 2007). "BBRC takes majority stake in Adairs". Sydney Morning Herald. Retrieved 23 October 2012.
  51. ^ Moses, Asher (28 May 2007). "No show for Sanity's online music store". Sydney Morning Herald. Retrieved 20 May 2012.
  52. ^ Brandle, Lars (3 December 2008). "Aus Retailer Sanity Loses LoadIt Service". Billboard. Retrieved 27 May 2012.
  53. ^ a b Heathcote, Andrew (6 November 2013). "Brett Blundy goes overweight on underwear and buys other half of Bras N Things". BRW. Retrieved 29 March 2015.
  54. ^ a b Redrup, Yolanda (6 November 2013). "Bras N Things and BrightEyes Sunglasses bought back by previous owners". Smart Company. Retrieved 29 March 2015.
  55. ^ Brandle, Lars (24 September 2009). "Australia's Sanity in Management Buyout". Billboard. Retrieved 26 November 2012.
  56. ^ Pallisco, Marc (26 September 2009). "Sanity Entertainment, owner of Virgin, HMV, sells to management team for undisclosed sum". RealEstateSource.com.au. Retrieved 26 November 2012.
  57. ^ Cite error: The named reference Inside Retail was invoked but never defined (see the help page).
  58. ^ "Bras N Things sold to Hanes Australasia for $500 million". 9Finance. 2018-02-09. Retrieved 2022-05-28.

External links

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