HotShed has achieved what many believe the impossible -it has turned a flagging dot.com into a break-even business.
DStore has posted a break-even result for its first full quarter of trading after Brisbane-based HotShed picked up the dStore brand and customer database from administrators Ferrier Hodgson. In April 2001 dStore was placed in administration when parent company Harris Scarfe unveiled financial irregularities amassed over a six-year period that saw it tumble into liquidation.
HotShed claims the turn around is the result of smart management practices and the implementation of a proprietary technology platform that streamlines the online operation.
Sales for the three months to the end of December topped $664,000. When HotShed acquired the dStore assets it was generating sales of around $90,000 per month.
"The Christmas quarter was a real litmus test for the new dStore," said HotShed chief executive Andrew Cooper. "We were unsure if consumers would continue to support the brand but their loyalty has been remarkable."
HotShed has reportedly slashed dStore's marketing costs as well as remove a number of unprofitable product categories from its Web site.
Buoyed by the quarterly success Cooper said the company intends to widen the product lines over the next six months to include books, toys, electrical, computers, software, and mobile phones.