Specialty Fashion Group for sale

Gary Perlstein By Richard Nolan-Neylan 2013_0197Specialty Fashion Group has revealed that it is assessing a purchase offer from a consortium associated with outgoing CEO Gary Perlstein.

The Katies, Millers and Rivers owner told shareholders on Wednesday morning that it has set up an independent review committee compromising company directors, excluding Perlstein, to assess the proposal, following reports in the Australian Financial Review and The Australian that the business was up for sale.

The proposal is reported to involve a plan that could see the business taken private in the pursuit of a turnaround strategy for the beleaguered fashion business.

SFG said on Wednesday that the bid was one of many that the Board has fielded in the last few months, following the a structural review of the business flagged last year.

“The Board has received a number of confidential, non-binding, indicative proposals for change of control or of the Group or the acquisition of certain brands,” SFG said.

“Discussions concerning the matter are ongoing and are not regarded as sufficiently advanced to warrant any further disclosure at this time.

“Shareholders should note that there is no certainty that the proposals will result in a binding offer or whether such an offer would be recommended by the IRC.”

Perlstein announced his intention to step down as CEO of SFG last November after 14 years, but will not officially exit the role until February 15.

Perlstein is a major shareholder in the business, which booked a $8.39 million net loss in FY17 and has enacted a plan to close up to 300 stores by 2020.

 

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