Apparel conglomerate VF Corporation, the parent company of brands like the North Face, Lee and Timberland, has acquired New Zealand-based Icebreaker Holdings. The purchase valued at over $100 million is notable because VF also owns another wool giant Smartwool. Post the news of acquisition, suggest Ibex, a smaller, high-end merino brand, has retrenched about half the staff at its main office in Vermont and was headed for bankruptcy (last week, Ibex announced plans to shut down).

Ibex CEO Ted Manning wrote in statement, “As much as Ibex has succeeded and created opportunities for itself, it has also dealt with the headwinds of seasonal volatility, shifts in the retail landscape and an ever-changing consumer.” While Icebreaker and Ibex may be poles apart, they are indicative of an industry facing a steady attrition of smaller, independent brands.

Experts say it’s a difficult time to be a small brand or a small retailer. The pressures have never been greater. The say the industry is going in the direction where a lot of more niche brands are being snapped up by larger companies. Icebreaker will be getting a bit more capital and access to distribution with the takeover. Consumers will benefit from cheaper Icebreaker goods. Earlier, as both were competitors, Smartwool and Icebreaker will now reposition themselves