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Playboy’s owner is said to be buying Honey Birdette, a lingerie retailer in Australia. It is a luxury lingerie brand that garnered attention due to its overly provocative marketing strategy, and now the Playboy brand will own it for $330 million.
The acquisition arrangement
As per Fox Business, the owner of Playboy, an American men's lifestyle and entertainment magazine, is trying to expand his business. It would like to go beyond the licensing deals for its world-renowned bunny-ear logo, and acquiring Honey Birdette could be a step toward its goal.
Honey Birdette is said to own at least 60 brick-and-mortar stores around Australia, and it also has few outlets in the United States and the United Kingdom. It was said that the luxury lingerie company is expecting more than $73 million in revenue for the fiscal year ending this month which is equivalent to 40% growth of the business.
With that said, it is obvious that Playboy will also gain a lot from the purchase. The company is said to be planning to use its brand’s reputation to expand and market Honey Birdette in both online and offline stores.
Business expansion and new stores
According to an insider who has knowledge about the dealings, Playboy will be opening new retail stores of Honey Birdette in New York, Miami, and Dallas. The aim is to open the stores in the coming months and accelerate the lingerie brand's reputation.
It was added that apart from racy lingeries, Honey Birdette also sells sex toys, so the company goes well with Playboy and its image. Perhaps, Playboy will also use its own models in the future ads for Honey Birdette. The brand may also become Victoria's Secret’s competitor in the process.
The Wall Street Journal also mentioned that Playboy will also focus on marketing and selling Honey Birdette products online. Although it will be opening more stores, online selling will also be given priority since it is the norm right now due to the pandemic. Meanwhile, Playboy’s acquisition marks the company’s shift from pure licensing deals to operating its own business lines.
