Potential acquisition of General Pants, page-6

General Pants Co auction set to launch, first round bids in July
Sarah Thompson, Anthony Macdonald, Tim Boyd and Yolanda Redrup
Jun 23, 2021 – 5.31pm
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Buyout funds wanting to try on the Smorgon family’s local fashion retailer General Pants Co are about to get a closer look at the label.


General Pants has 60 stores around the country. Angela Wylie

Street Talk understands General Pants’ adviser Monash Capital has been putting the finishing touches on a sale flyer for the business, which is expected to be sent to private equity and trade players next week before an indicative bid date in July.

The marketing materials will provide potential buyers with more detail about what’s on the block than what’s been divulged in early soundings with suitors over the past month, and kick start the group’s auction.

Sources said Monash has been telling prospective acquirers that General Pants’ network of 60 stores around the country generates $130 million turnover annually.

The business has a 60 per cent gross profit percentage and double digit profit margin, according to what Monash has said in early soundings.

Bidders include Accent, which acquired the Glue Store chain in April;Premier Investments and Universal Store, and mid-market buyout funds.

In addition to its local store network General Pants also sells internationally via its online platform. About 25 per cent of all its products are denim, and 50 per cent of its sales come from in-house or exclusive brands. Of those exclusive brands, General Pants has global rights for many of them to sell their clothes around the world. Apologies if this has been posted before ..V