Brett Blundy-backed Dusk planning for IPO support

The company was originally part of the homewares business Adairs, which is already listed, but was spun out as a separate retailer.

The Brett Blundy-backed retailer Dusk is planning to launch a process after reporting season to secure cornerstone investors for its initial public offering.

It comes after DataRoom revealed in February that the company had plans to head to the boards through Canaccord Genuity and Shaw and Partners.

Dusk has about 100 stores nationally and its market value is expected to be about $100m when listed.

A non-deal roadshow where fund managers were sounded out about their interest in the business has just been completed.

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.

The company describes itself as Australia’s premium retailer of candles, including scented candles.

It sells home fragrances, plant therapy products, homewares and accessories.

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.

Earlier this year, Mr Blundy and Catalyst were also planning to list their youth clothing retailer Universal Store through JPMorgan and UBS.

However, the plans for that deal are currently on hold.