King of Shaves

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The King of Shaves Company Ltd.
Industry Shaving and skincare
Genre Shaving, skincare, razors, blades and toiletries
Predecessors Knowledge & Merchandising Inc. Ltd.
Founded 1993 (KMI), 2009 (KOS Co)
Founders Will King
Headquarters Beaconsfield, Buckinghamshire, England
Area served UK, USA, Australia, New Zealand, Brazil, Japan, South Arica
Key people Will King (Founder), Hiten Dayal, Andy Hill (Managing Director), Madeleine Stokstad (Finance Director), Karen Heygate-Browne (Operations Controller), Samantha Danzine (Supply Chain Manager), Jane Greenaway (Business Systems), Simon Watson (Head of Drawing & Colouring In).
Products King of Shaves, Hyperglide, Azor, Queen Of... , Prostyle eGrooming
Production output Mainly in UK
Owners Private shareholders
Employees 14[1]
Website http://www.shave.com

The King of Shaves Company, Ltd. is a British toiletries company headquartered in Beaconsfield, Buckinghamshire, England. The King of Shaves brand was founded in 1993 by Will King. The company was demerged from Knowledge & Merchandising Inc. Ltd. on 1 June 2009. It is owned by The King of Shaves Holding Company Ltd.

History[edit]

Will King founded King of Shaves in 1993.

In 2009, The King of Shaves Company Ltd. was demerged from KMI,[2][3] and the company appointed Atul Sharma as CFO and Chris Outram[4] as Non-Executive Chairman of both The King of Shaves Company Ltd. and KMI (now KMI Brands Ltd).

Since 2009, King of Shaves has used a business model similar to that used by Coca Cola, with a central office controlling research and development, whilst production and point of sale is localised to a specific market.[1] The success of this model has varied. Though in 2009 the company's merchandise was stocked in at least 7 separate countries, from 2007 the turnover went from £13.9 million, to £25 million in 2008, to £10 million by 2012.[5][6][7]

On 22 June 2009, the company announced a "Shaving Bond" issue of up to five thousand £1,000 non-transferable and non-convertible bonds, which was reported in the press[8][9][10] and described by Will King as being an "innovative way to potentially raise money from up to 5,000 brand enthusiasts". The issue was overseen by FSA regulated accountancy firm BDO Stoy Hayward with legal advice provided by Memery Crystal LLP.[11]

In October 2011 The King of Shaves Company signed a multi-year agreement with Spectrum Brands Holdings Inc, owner of Remington branded electrical grooming products, to exclusively distribute King of Shaves products in the USA and Canada. The distribution agreement was dissolved in 2012 after 'breaches of contract' by Spectrum Brands[12]

On 27th October it was announced that Will King would be leaving the company with immediate effect and Andy Hill was appointed as the new CEO. [13]

Razors and blades[edit]

King of Shaves launched a 4-blade razor (call the Azor) in the UK in late 2008. They launched a 5-blade razor (called the Azor 5) in the UK in early 2011. The cartridges featured blades manufactured by Kai Industries in Japan (a shareholder[14] in King of Shaves). The Azor 5 was discontinued in early 2014 and was replaced by the Hyperglide System Razor. All the razors have been designed in the UK and have used cartridges and blades supplied by Kai.

Mergers and acquisitions[edit]

In March 2008 KMI acquired the issued share capital of Floraroma Ltd., which owns women's toiletries brands including Phil Smith, Delicious Beauty, Dead Sea Source, Little Me, Derma-Mum and Floracologie. In October 2009, KMI acquired the Naked skincare brand.[15]

Criticism[edit]

In 2009 the company offered savings bonds with 6%pa interest rate to consumers. These savings bonds rely on the company's growth in order to fund the returns. This scheme was not covered by the Financial Services Compensation Scheme and at the time of application consumers were unable to get reports on how well the company was performing.[16][17]

In 2012 a fresh batch of bonds were released to existing Bondholders only, though the ability to redeem them has been withheld for a number of years, with no change to their status with regulators.[18]

Sponsorships[edit]

King of Shaves has sponsored athletes throughout Great Britain. During 2006 they sponsored John Terry and P1 Offshore Powerboat.[19] In later years, they sponsored both Chrissy Palmer for MRF Formula Ford races, but also Jordan King, son of Lord Sainsbury, during his F3 races.[20]

2012 saw the company sponsoring John Terry for a one-off commercial deal, and their backing of the youngest skipper to compete for Wales.[21][22]

References[edit]

  1. ^ a b Rock, Matthew (29 April 2013). "How positive start-up innovation is making full-time work redundant". City A.M. p. 20. 
  2. ^ http://www.growingbusiness.co.uk/king-of-shaves-gears-up-for-global-expansion.html
  3. ^ http://www.memerycrystal.com/Articles/23-06-2009/Memery-Crystal-Advises-New-Client-King-of-Shaves-on-Demerger-from-Knowledge-and-Merchandising-Inc.aspx
  4. ^ http://www.occstrategy.com/node/389
  5. ^ http://www.thisismoney.co.uk/markets/article.html?in_article_id=440580&in_page_id=3
  6. ^ Bentley, Diana. "On track for top entrepreneurs prize". The Times (London). 
  7. ^ Bridge, Rachel (9 December 2012). "For CEOs, it can be good to talk; THINK TANK". The Sunday Telegraph (London). p. 8. 
  8. ^ Booth, Jenny (23 June 2009). "Business big shot Will King King of Shaves". The Times (London). 
  9. ^ http://news.sky.com/skynews/Home/Business/King-Of-Shaves-Tries-To-Raise-5-Million-Pounds-By-Issuing-Bonds-To-Customers/Article/200906415315203?lpos=Business_First_Buisness_Article_Teaser_Region_2&lid=ARTICLE_15315203_King_Of_Shaves_Tries_To_Raise_5_Million_Pounds_By_Issuing_Bonds_To_Customers
  10. ^ http://www.thisismoney.co.uk/investing/article.html?in_article_id=487867&in_page_id=166&position=moretopstories
  11. ^ http://www.memerycrystal.com/uploaded/Articles/other%20files/Website%20-%20The%20Lawyer%20-%20King%20of%20Shaves.pdf
  12. ^ Bridge, Sarah (2 June 2013). "King of Shaves reaches fresh US deal". Mail on Sunday (London). 
  13. ^ http://www.cosmeticsbusiness.com/news/article_page/Will_King_exits_King_of_Shaves/102851
  14. ^ Quinn, James (13 August 2011). "King of Shaves cuts Japan deal". The Daily Telegraph (London). 
  15. ^ http://www.kmibrands.com/news/kmi_gets_a_new_look?from_page=1
  16. ^ JAMES CONEY (1 July 2009). "WARNING OVER RISKY 'SHAVING BOND'". DAILY MAIL. Retrieved 13 April 2010. But despite being advertised as a savings bond, this scheme actually invests in the King of Shaves company; specifically for the company's marketing. It is NOT a savings account. Essentially, the Shaving Bond is a corporate bond -- but one issued for a non-listed company. Whether you get a return depends on the health of this firm. Your money is locked away for three years. Every six months the company says it will pay you 3pc 'interest' -- which you will have to declare to the taxman. 
  17. ^ Patrick Hosking (27 June 2009). "Sweeney Todd would blush". The Times. Retrieved 13 April 2010. In the offer literature, there are risk warnings but no information on the history of the company, no profit and loss account, no balance sheet, and no details on how the bonds would rank in the event of a winding-up. The company has no track record, having only recently been demerged from a larger business. According to Mr King, it hasn't even yet been decided how much bank finance should be apportioned to the new business. Alas, no rational investor could possibly invest in the bonds on the basis of such sparse data. The upside may be a chunky 6 per cent income (for comparison, mainstream bank three-year bonds now yield about 4 per cent), but the downside is that investors are locked in for three years. They could also lose every neck-stinging penny if King of Shaves were to fail. 
  18. ^ Dunn, Sam (29 August 2012). "Why Gambling on Higher Rates May Put Your Savings at Risk". Daily Mail (London). 
  19. ^ Ashton, Neil (28 September 2012). "Captain, Leader, Legend...Outcast?". Daily Mail. 
  20. ^ Brown, Oliver (1 March 2013). "King of the road has right formula; Motor Racing Interview Jordan King reveals to Oliver Brown how being son of Sainsbury's chief is helping his Fl ambitions". The Daily Telegraph (London). p. 16. 
  21. ^ Scott, Matt (25 September 2012). "Umbro drop defender's deal". The Daily Telegraph. p. 2. 
  22. ^ "Hannah comes home for exciting event; Sailing". South Wales Echo. 22 August 2012. p. 3. 

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