Macquarie Capital has been hired for a potential sale of Best & Less in the new year.
Apparently, the discount apparel retailer has been a strong performer amid the pandemic and the understanding is that Allegro will be keen to capitalise on its success while demand for retail online is booming.
The clothing business was purchased by Allegro Funds Management in 2019 from the local arm of Steinhoff International, Greenlit Brands.
The acquisition was part of a wider deal by Allegro where it also purchased Harris Scarfe, which was later placed into receivership and sold off to the Spotlight Group. The Best & Less Group is made up of brands that include Best & Less and Postie in New Zealand.
Collectively, the brands operate more than 250 stores across Australia and New Zealand and employ over 4000 people.
Allegro has a track record of turning around unloved businesses in the retail space, with it counting New Zealand’s Hannahs shoes and Pizza Hut as among its acquisitions.
Other businesses in retail may also be placed on offer in the new year as many hold out hope for a strong Christmas shopping period after sales were severely impacted by the pandemic.
Talk has emerged about a potential sale of Best & Less as Greenlit Brands moves to sell its Fantastic Furniture discount furniture operation through an initial public offering, with terms for the deal expected to be set on Thursday.
Fantastic Furniture sales have been performing strongly amid the COVID-19 period.
Greenlit sold its general merchandise operations and is offloading Fantastic Furniture as its parent Steinhoff International looks to raise funds after coming close to collapse about three years ago.
This was when accounting irregularities were identified in the business suggesting that profits and assets had been overstated by nearly $12bn.
Healthscope firmly in the sights of Bain
Bain Capital is closing in on its next big target struggling with too much debt – the country’s second-largest hospital operator Healthscope.
Incitec Pivot’s fertiliser price likely too high for some
Potential bidders have been given information about Incitec Pivot’s fertiliser unit, but the jury’s still out as to how much they will be prepared to pay..