Ideal has also closed its loss-making Jewellery Vault channel, which was launched last July. According to industry analysts Numis, Jewellery Vault lost£500,000 in six months and the closure will cost£400,000.
Superstore TV designs, sources and supplies craft products manufactured in China for wholesale customers in the UK. The channel is making a loss at present, but is expected to get back in the black this year based on a number of new accounts, including a contract to supply craft products to Asda.
Ideal paid£500,000 to Superstore TV owner Simply Media TV and agreed to pay off£1 million in company debts.
'The acquisition of Superstore TV gives us the ability to source products directly from overseas manufacturers, providing innovative and competitive merchandise for our successful Create & Craft TV and web business,' said Ideal Shopping Direct chief executive Andrew Fryatt. 'We will also continue to develop Superstore's wholesaling business, sourcing products in craft and other categories complementary to our existing product range.'
Numis analyst Steve Davies said: 'From Ideal's perspective, the acquisition offers potential benefits for a relatively small outgoing. It should enable Ideal to secure improved buying terms for its own Create & Craft products, as well as opening up new retail channels. Superstore's expertise in sourcing from the Far East should also help IDS to boost gross margins on its non-craft ranges.'
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