The rumoured shuttering of another South African fashion label spells more doom for the local industry. Source: Imagen 3
This latest restructuring follows a round of cuts in 2023, driven by challenging economic conditions impacting business planning.
Superbalist, then part of the Naspers-owned Takealot Group, undertook a Section 189 process last year to reduce its workforce after Takealot Group reported a R400m loss in June 2023, over three times higher than the previous year’s losses.
Broader structural changes by the new owners include halting Superbalist’s private label operations, launched in 2019 to emphasise locally manufactured clothing.
David West, head of design, at the time highlighted that the private label was created to capture Superbalist’s brand ethos:
We are known for fashion and leading the way in terms of trends. We’re the destination to find something new and exciting. This collection encapsulates accessible, yet unique fashion at good prices, with pieces that have you covered from work to play.
Despite these ambitions, Superbalist’s private label business is now being dismantled, with all roles associated with its design, buying, engineering, and finance functions set to be cut.
Charting decline
Superbalist’s journey began in 2010 when it was founded as Citymob by local entrepreneurs Luke Jedeikin, Claude Hanan, and Daniel Solomon.
Initially focused on providing exclusive experiences and premium products, the brand capiotalised on the fashion ecommerce buying trend in 2013 and rebranded as Superbalist, quickly becoming South Africa’s largest online fashion retailer.
In 2014, Superbalist was acquired by Takealot. However, the departure of its founders in 2019 and the ongoing shifts in the local retail environment have presented challenges.
Exit strategy
Takealot’s decision to sell Superbalist was finalised in September 2024, with Blank Canvas Capital leading the acquisition.
While Superbalist was once a key growth driver and important E-tail test lab for the Takealot Group, competition from Chinese e-tailers and Amazon’s recent entry into the South African market pressured the group to offload the fashion business and streamline its focus.
This latest potential reshaping of its business model could mean that Superbalist’s focus on local manufacturing and in-house design may become a thing of the past.
