Investment Firm Story3 Takes Stakes In H.D. Buttercup, Coco Republic

Coco Republic, the well-known Australian home furnishings retailer, is positioning itself for a global expansion with a major investment in the company from U.S.-based Story3 Capital Partners.

In tandem with its investment in Coco Republic, Story3 has also taken a majority position in H.D. Buttercup, the Los Angeles based home furnishings retailer headed up by industry veteran Evan Cole. Buttercup has been selling Coco Republic merchandise in the U.S. but will open a full-line 40,000-square-foot store in its Culver City, CA flagship sometime in the first half of 2022.

Peter Comisar, Story3’s managing partner, in announcing the deal, said, “We are delighted to be a value-added partner to the entire team at Coco Republic for the company’s important next chapters. Coco Republic’s compelling product, design and end-to-end service takes the friction out of the customer’s journey to extraordinary living and working spaces.

“Coco Republic’s luxury style, product quality and design services fill a void for affluent and aspiring younger, more contemporary consumers.” The retailer has 14 stores in Australia and New Zealand but the new California store will represent its first venture outside of the region. Plans on potential additional new stores in the U.S. and elsewhere were not announced.

Cole, who will remain as the head of Buttercup, said, “Our customers have found Coco Republic to be the most exciting brand we have worked with in many years. The sales have been extraordinary.” He described its style vibe as “young and fresh” with an Australian coastal design aesthetic. “The concept is very timely.”

Anthony Spon-Smith, who has spent the past 20 years leading Coco Republic, will assume the role of co-CEO in conjunction with the investment. “Today is an important milestone in Coco Republic’s growth journey,” he said, “with the announcement that Story3 is joining the business as a partner to provide important capital and leading disruptive brand and retail expertise. Together we look to succeed in our goal of becoming a leading global direct to consumer lifestyle brand.”

Terms of the deal and the exact ownership stakes Story3 is taking in each business were not disclosed. Story3, which was founded in 2018 by Comisar, a one-time Guggenheim Partners and Goldman Sachs GS executive, describes itself as “a leading alternative investment manager exclusively focused on compelling consumer facing companies, disruptive brands and businesses at the intersection of consumer and sustainability.” Among its recent ventures have been investments in retailers Sur La Table and Lands’ End LE as well as other companies in other sectors, including Perry Ellis.