Another Brett Blundy-backed retailer is about to make efforts to head to the boards for an initial public offering and this time it is the scented candle store Dusk that appears to be up for offer.
Dusk is preparing the company for a potential listing this year, with early investor education meetings soon to be under way through advisers Canaccord Genuity and Shaw and Partners.
The company describes itself as Australia’s premium retailer of candles and, as well as scented candles, it sells home fragrances, plant therapy products, homewares and accessories.
Dusk has about 100 stores nationally and its market value is expected to be about $100m when it heads to the boards.
The company was originally part of the homewares business Adairs, which is already listed, but was spun out as a separate retailer.
It is owned by Brett Blundy and the private equity firm Catalyst, with the business in a fund nearing the end of its life.
Dusk generates about $10m a year in annual earnings before interest, tax, depreciation and amortisation and its revenue is about $86m.
Mr Blundy and Catalyst are testing investor interest for a float of Dusk at a time that a non-deal roadshow is also planned for youth clothing retailer Universal Store.
Working on that potential float are investment banks UBS and JPMorgan, and the business is expected to be worth up to $300m once listed.
Universal Store describes itself as an Australian retailer targeting the youth market.
With 60 stores, it specialises in trend-led and casual men’s and women’s fashion, shoes, accessories, lifestyle and gifting and sells a range of brands including Champion, Perfect Stranger, Tommy Jeans, Wrangler and Lee.
It was snapped up by Mr Blundy’s BB Retail Capital, CDCM and Five V Capital, in June 2018. The consortium outlaid $110m for the operation to buy from founders Michael and Greg Josephson.
Universal Store generated $25m of annual earnings before interest, tax, depreciation and amortisation for the 2019 fiscal year on sales of $145m.
The deals could prove the latest lucrative exits for Mr Blundy who has amassed a fortune worth more than $1bn through retail and shopping centre investments.
However, the challenge will be to convince investors to pour money into the retail sector while it battles soft economic conditions, disruption from online shopping, high rents from landlords and more competition.
Mr Blundy chairs BB Retail Capital, which has sold businesses including Bras N Things, which was acquired by US company Hanes in 2018 for $500m and jewellery chain Lovisa, which he founded in 2010 and was listed in 2014 with a $210m market value. It has more than 270 stores.
Adairs was listed in 2015 with a $398m market value and his Aventus Property Group also floated in 2015 with a $686.5m market value.
BBRC was founded in 1980 by Mr Blundy with the purchase of record store Disco Duck, now known as Sanity Entertainment Group. His company bought the fashion jewellery store Diva in 2005 that now has almost 600 stores in international markets.
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