Cancelled orders drag on Pas Group

Cancelled orders from department stores including David Jones are understood to have contributed to the financial distress of Pas Group. Picture: Bloomberg

Cancelled orders from department stores including David Jones are understood to have contributed to the financial distress of Pas Group, which remains in a trading halt with its future hanging in the balance.

It is understood that David Jones has cancelled orders for Pas Group’s wholesale stock worth $1m during the COVID-19 disruptions, although the department store did not comment. Myer has also closed its stores, where Pas has about 58 concessions stores, until next month, compounding challenges.

Pas Group, the owner of fashion brands such as Review Clothing, Black Pepper and Yarra Trail, has entered a trading halt with expectations that its shareholders are embarking on a restructure of the business.

Some believe that its 65 per cent shareholder, Coliseum Capital, could privatise Pas, with those fearing the worst wary that if this does not occur that the business will be placed into voluntary administration.

Private equity Coliseum secured the stake after it launched a takeover bid for the fashion retailer in 2015.

The company said in a statement that the trading halt is to assess the impact on the business from COVID-19 disruptions and assess a potential restructure.

Pas Group’s brands include Review, Black Pepper, Yarra Trail, Marco Polo, Breakaway, Black Pepper, Mooks, Everlast, Dunlop, Slazenger and Karrimor, among others.

It is understood that in recent weeks, the company had been trying to raise capital, but had been unsuccessful.

Some expect that the retailer’s major shareholders would offer more capital to keep the business afloat.

Other major shareholders in Pas are Cannes Management, which holds 10.6 per cent.

The retailer posted a $1.2m loss for the six months to December. Its market value is just over $6m.