A little over a year since STRAX launched Dóttir, a sports-focused headphone company, the business line is looking to be divested. In an Interim Q3 Report published by STRAX, it was disclosed that the company is looking to sell several of its brands including Dóttir and grell, along with its licensed brand portfolio of adidas and Diesel.
Gudmundur Palmason, CEO of STRAX, said in the release, “Some of the businesses that will be divested also have viable commercial potential, but we believe those will benefit more under a different ownership.”
The announcement comes after STRAX classified Dóttir and the other businesses it is looking to divest as “discontinued operations”, an accounting term for a firm’s operations that have been or will be sold or potentially shut down. Right now it appears that STRAX is looking to sell Dóttir and the other business lines.
Last quarter STRAX announced in its Interim Q2 Report that it was evaluating its tech accessory and personal audio product portfolio and that it needed to “rapidly evaluate to divest or wind some of them down. Our ongoing analysis is centered on each brand’s growth prospect and differentiation vs. continued investment and downside risk.”
While the financials of the Dóttir business unit are not disclosed separately, STRAX did publish the financial results of all the business lines that are part of the discontinued operations. In the past three months from July 1 through September 30, the discontinued operations accounted for nearly a €3 million operating loss.
In the same release, STRAX said its Board of Directors expects that a sale will occur within the next 12 months.
Palmason, STRAX’s CEO, shared his vision for STRAX moving forward, “By focusing on the European distribution business and fewer brands we will be able to enhance efficiency, growth, and profitability as we are freeing up both resources and management attention.”
STRAX is a company that specializes in products that suit a mobile lifestyle. Their wholly owned brands include Urbanista, Clckr, Richmond & Finch, Planet Buddies, xqisit, AVO+, grell and Dóttir. STRAX is currently listed on the Nasdaq Stockholm stock exchange.
Dóttir started as an idea between friends that popped up on a stroll around London, creating a headphone for World Class athletes that allows them to train freely without outside distraction. From there it has grown into something much bigger, not only a brand that creates headphones for athletes but a brand that supports female empowerment and equality. These brand values tie directly into Katrín Tanja Davidsdottir and Annie Mist Thorisdottir’s core personal values. The brand Dóttir was developed within STRAX and is wholly owned by STRAX.