ID :
173248
Tue, 04/05/2011 - 14:22
Auther :
Shortlink :
http://m.oananews.org//node/173248
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Receivers put Colorado Group up for sale in Australia
SYDNEY (AAP) April 5 - Financially troubled apparel and footwear retailer Colorado Group has been put on the market, with brands such as JAG and Diana Ferrari expected to be snapped up this month.
The debt-riddled Colorado group was placed in administration last week after lenders rejected a proposal to allow it to continue trading.
Colorado, which owes about $400 million to a syndicate of 18 financiers, has 434 stores across Australia and New Zealand and 3,800 staff.
Colorado receiver and Ferrier Hodgson partner James Stewart said the sale process would seek expressions of interest from potential buyers throughout Australia, New Zealand and South East Asia.
"These are well-known brands with an established history in the Australian retail market that will provide the right buyer with the opportunity to consolidate their presence in this region," Mr Stewart said.
"We have already had a pleasing number of unsolicited expressions of interest for all brands."
Expressions of interest are due to close on April 19 and the sales process is not expected to be completed for several months.
Solomon Lew, the head of the Premier retail chain, is already examining the acquisition of some of Colorado's brands, but Myer says it's not interested.
Mr Lew expressed interest in Colorado Group during Premier's interim results late last month.
"We would be pleased to have a look at the asset portfolio there, and if we feel that there is a natural fit and that it can make a good return for shareholders, of course we'd be interested," Mr Lew told the briefing.
Mr Stewart said that Colorado chief executive Kevin Roberts has committed to stay with the group during the receivership.
Mr Roberts said he was happy to continue in the position.
"In my short time with the business, it is clear that there is a tremendous opportunity to refresh the brands and lift their operational performance," he said.
"The Colorado brand has underperformed, however the remaining brands are profitable businesses."
The debt-riddled Colorado group was placed in administration last week after lenders rejected a proposal to allow it to continue trading.
Colorado, which owes about $400 million to a syndicate of 18 financiers, has 434 stores across Australia and New Zealand and 3,800 staff.
Colorado receiver and Ferrier Hodgson partner James Stewart said the sale process would seek expressions of interest from potential buyers throughout Australia, New Zealand and South East Asia.
"These are well-known brands with an established history in the Australian retail market that will provide the right buyer with the opportunity to consolidate their presence in this region," Mr Stewart said.
"We have already had a pleasing number of unsolicited expressions of interest for all brands."
Expressions of interest are due to close on April 19 and the sales process is not expected to be completed for several months.
Solomon Lew, the head of the Premier retail chain, is already examining the acquisition of some of Colorado's brands, but Myer says it's not interested.
Mr Lew expressed interest in Colorado Group during Premier's interim results late last month.
"We would be pleased to have a look at the asset portfolio there, and if we feel that there is a natural fit and that it can make a good return for shareholders, of course we'd be interested," Mr Lew told the briefing.
Mr Stewart said that Colorado chief executive Kevin Roberts has committed to stay with the group during the receivership.
Mr Roberts said he was happy to continue in the position.
"In my short time with the business, it is clear that there is a tremendous opportunity to refresh the brands and lift their operational performance," he said.
"The Colorado brand has underperformed, however the remaining brands are profitable businesses."
