EthicalSuperstore.com acquired by Spark Response

The assets of EthicalSuperstore.com, a seller of all things eco-friendly, have been acquired out of administration by Spark Response, a contact centre and fulfilment firm. The acquired business will operate as a new subsidiary company called Spark etail Ltd. Ethical Superstore founders Andy Redfern and Vic Morgan, together with Spark directors Noel Lambert and Peter Slee, will form the board of directors of the new business.

The two companies, both based in Gateshead, Tyne and Wear, had been working together for some time, with Spark managing inbound call handling for Ethical Superstore since April 2010. In August last year, 16 members of warehousing and contact centre staff transferred from Ethical Superstore to Spark’s premises to work on the account. Upon completion of the deal, Spark says approximately 30 Ethical Superstore jobs will have been saved.

Up until Christmas, Ethical Superstore was on course to deliver an annual profit for the first time. However, failure of its payment systems combined with adverse weather in December affected sales and order deliveries. This was exacerbated by the sudden withdrawal of funding from the company’s biggest investor.

On 15th March, after four weeks of negotiations with potential buyers and options for the business, Ethical Superstore’s largest trade creditor, Spark Response, acquired the assets of the business.

The acquisition secures the continuation of the three core websites: Ethical Superstore, Natural Collection and the recently launched online marketplace OneGoodMarket. Using Spark Response’s fulfilment expertise, Ethical Superstore will also continue to serve its partners through white-label sites.

In an interview with Catalogue e-business, Peter Slee, managing director of Spark Response, said that having worked with Ethical Superstore for some time, he was familiar with the nature of its funding structure and was aware that it may need further working capital to sustain its growth plans. Saying that, he believes Ethical Superstore to be “a fundamentally sound business with good growth potential in serving the market for fair trade and eco-friendly products,” and hopes that the acquisition reflects the confidence and faith Spark Response has in the business. He is also hopeful that the vast majority of Ethical Superstore’s suppliers will continue working with the new company.