Intimate apparel company Sherwood Group has bought the brand and assets of lingerie business Charnos for a cash consideration of GBP585,000 (US$712,541).
 
Sherwood, which owns brands such as Lepel, Miss Lepel, and Ted Baker Intimates, bought the brand on 17 March from the administrators of Nelson I.A. Limited.

Sherwood is funding the buy through cash resources. 44 Charnos staff are moving to Sherwood along with general manager Shaeren McKenzie.

Charnos is distributed to more than 500 customers in the UK. The company had sales of GBP4.3m in the 12-month period to 31 December 2005, according to unaudited management accounts from Nelson.

Nelson acquired the brand in 2002 for a goodwill consideration of GBP1m from Charnos Plc. 

Sherwood said it was "focused on becoming the leading provider of branded solutions in the intimate apparel sector".

The company said: "The acquisition of the Charnos business acts as a perfect complement to the existing portfolio of brands and provides access to a greater number of independent retailers where Charnos has a higher penetration than current Sherwood brands. 

"Charnos is positioned amongst the aspirational brands within the lingerie market and will broaden the reach of Sherwood brands. The brand fits well with Sherwood's other brands - Lepel, Ted Baker, Discover Mademoiselle, Miss Lepel and the newly launched Urban Nights."

Sherwood hopes to return Charnos to "normalised profit" through improved sales, margin and operating costs.

Chairman Michael Hobbs said: "This is a major step forward for the Sherwood Group and demonstrates the ambition and confidence of its management team."