Sale rumours resurface. It follows recently ‘announced’ departure by 9% shareholder and 14 year tenured CEO Perlstein.
All shareholders have funded (US stores $7m exit costs plus exit costs of another 100 or so over last few months) store closures, online investment build, effects of poor product selection across main brands (CEO in recent ASX releases “inventory is now clean”) and Rivers turnaround; we are talking an underwriting cost of more than $60m borne over last few years.
Nice work for a buyer if you can get someone dumb enough to hand it over to them clean and for peanuts.
Buyer will need to stump up good cash. Envisage another Billabong scenario.
How is the new CEO recruitment process coming along?
Will the Board, acting in the interests of all shareholders, release details here?
Household income growth in Australia tipped to start rising strongly later this year, national income growth underway, strong jobs growth continues and forecast to continue.
Private equity licking lips here at getting it for a song; largely free of loss making stores, Rivers no longer haemorrhaging, online conversion well progressed, icon brands that continue to reasonate, Noni B a perfect comparable target market competitor clearly demonstrating it can be done with a competent management team.
What a deal!
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ASX-listed Specialty Fashion Group, the beleaguered owner of apparel retailers including Katies, Rivers and City Chic, is up for sale.
As first reported by Street Talk, boutique Luminis Partners has been trying to drum up bids from rival retailers and turnaround private equity investors, as part of a formal sale process.
Multiple parties are said to be in the process.
Specialty Fashion Group shareholders are likely to take the news with some caution, given previous failed attempts to sell the business.
Read more: http://www.copyright link/street-ta...rocess-underway-20180130-h0qsmo#ixzz55fFBJwRZ
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