THERE might be light at the end of the tunnel in Gresham Private Equity's attempts to offload its women's fashion chains, Witchery and Mimco, which were put on the block more than a year ago.
With Gresham failing to generate strong enough interest last year in a trade sale and then a widely hinted-at $300 million initial public offering of the 200-odd outlet operation, it is believed South African retailer Woolworths and its 87.88 per cent-owned Australian subsidiary Country Road are now in the final stages of due diligence.
Given the state of retail, one might expect Gresham will have to take a buzz-cut. It could also see the return of the Witchery business partly into the hands of retailer Solomon Lew. Lew, whose Australian Retail Investments owns about 11.8 per cent of Country Road, sold Witchery to Gresham in 2006.
Gresham reportedly paid about $160 million for both businesses.
Life in Dick Smith yet
COULD dinosaur hunter and former Woolworths executive Bill Wavish be looking to help out in another private equity buyout of a struggling retail relic?
About six years since Wavish partnered with the TPG-led (aka Texas Pacific) consortium in its $1.4 billion purchase of the Myer department store chain from the now Wesfarmers-owned Coles, there is talk that Wavish is sniffing around the dinosaur of local electronic retailers, the Woolworths-owned Dick Smith.
Woolworths put the electronics chain on the market earlier this year following a strategic review, which resulted in a $300 million write-down and plans to close 100 stores.
It is believed a shortlist of parties is already undertaking due diligence on the business. Wavish did not return CBD's phone calls.
Axe's sharp edge blunted
THE chairman of car parking and shopping centre landlord Sydney Airport, Max "The Axe" Moore-Wilton, showed he did have feelings after all when he fronted shareholders at yesterday's annual meeting.
After highlighting the efforts the former Macquarie-managed company had taken to axe costs, The Axe was pressed by one shareholder about why the Sydney Airport board should be paid so much now that the company was a one-airport entity (after offloading its European airport assets). "Do we have to pay you as much?" asked the shareholder, who said he did not intend to be disrespectful. "I don't find it disrespectful . . . I find it hurtful," The Axe joked, who at the meeting also had 8.9 per cent of votes cast against his re-election as chairman.
The former head of the Department of Prime Minister and Cabinet, however, hinted that some of his attention was diverted away from Sydney Airport in tackling the issues thrown up by the foul-mouthed radio host Kyle Sandilands.
"Some of my time is taken up in the affairs of that corporation," said The Axe about 2DayFM owner Southern Cross Media, which he chairs. "But I do pride myself on providing adequate time to Sydney Airport." He received $517,774 in airport-related fees last year up from the previous year's $432,256.
PwC under the rainbow
PWC has been named Australia's most gay-friendly employer for 2012 at an event hosted yesterday by Pride in Diversity.
At a lunch at the Ivy Ballroom in Sydney, hosted by retired High Court judge Michael Kirby and actress Jackie Weaver, PwC also won the gong for having the best LGBT network group. Its network group is called Glee@PwC (gays, lesbians and everybody else).
In No. 2 spot was KPMG for its KGEN network. Also in the top 10 were IBM for its Eagle network, Accenture, Goldman Sachs (for its Glam network), Lend Lease, Macquarie University, Chevron and the Australian Federal Police.
The event coincided with the International Day against Homophobia and Transphobia. Meanwhile, National Australia Bank held events in Sydney and Melbourne last night to launch its own LGBT-friendly network, Pride@NAB.
Stockland 'R' rolling
A FIFTH R appears to have been added to Stockland chief executive Matthew Quinn's strategy. After the property group added redundancies to its so-called three R (residential, retail and retirement) strategy on Monday, it has now announced a major restructure.
In an email to staff following the retrenchment of 30 people, Stockland's chief financial officer, Tim Foster, announced changes that included the outsourcing of "internal audit" and the departure of the group's chief risk officer, Craig Calder, whose "role is no longer required". There will also be a review of the "finance community organisation structure".
The restructure would also include a review of the group's legal services and a restructuring of the group's GST manager, Karl Wood, out of the business along with "head of applications" (in IT) Karl Wong. It's unclear how many Karls will be left.
Got a tip? srochfort@fairfax.com.au
Frequently Asked Questions about this Article…
Who is selling Witchery and Mimco and who is believed to be buying these women's fashion chains?
Gresham Private Equity is trying to sell the Witchery and Mimco fashion chains. The article reports that South African retailer Woolworths and its 87.88%‑owned Australian subsidiary Country Road are believed to be in the final stages of due diligence as potential buyers.
How much did Gresham pay for Witchery and Mimco and what sale options were previously considered?
Gresham reportedly paid about $160 million for Witchery and Mimco. After failing to generate strong trade‑sale interest last year, Gresham also widely pondered a roughly $300 million initial public offering before the current takeover interest emerged.
What does it mean that Woolworths and Country Road are in 'final stages of due diligence' for the Witchery and Mimco sale?
The article says Woolworths and Country Road are believed to be in the final stages of due diligence, which indicates they are actively reviewing the businesses and financials as potential buyers. The report stops short of confirming a completed sale.
What role might Solomon Lew play in the possible return of Witchery?
Solomon Lew, whose Australian Retail Investments owns about 11.8% of Country Road, previously sold Witchery to Gresham in 2006. The article suggests he could see the return of part of the Witchery business back into his hands if the transaction proceeds.
What is happening with Dick Smith and which buyers are reported to be interested?
Woolworths put the Dick Smith electronics chain on the market after a strategic review that led to a $300 million write‑down and plans to close about 100 stores. The article says former Woolworths executive Bill Wavish has been linked to interest and that a shortlist of parties is believed to be undertaking due diligence.
What shareholder and governance issues at Sydney Airport were highlighted in the article?
At Sydney Airport's annual meeting chairman Max 'The Axe' Moore‑Wilton faced an investor question about board pay for a one‑airport company and recorded 8.9% of votes against his re‑election. The article also notes he received $517,774 in airport‑related fees last year, up from $432,256, and that he chairs Southern Cross Media.
Which firms were recognised for LGBT workplace initiatives in the article and what awards were mentioned?
PwC was named Australia’s most gay‑friendly employer for 2012 and won for having the best LGBT network group (Glee@PwC). KPMG (KGEN), IBM (Eagle), Accenture, Goldman Sachs (Glam), Lend Lease, Macquarie University, Chevron and the Australian Federal Police were also in the top 10. The article also notes National Australia Bank launched its Pride@NAB network.
What restructuring announcements did Stockland make that investors should be aware of?
Stockland announced a major restructure that included 30 redundancies, outsourcing of its internal audit function, and the departure of chief risk officer Craig Calder. The group is reviewing its finance organisation and legal services, and restructuring roles including its GST manager Karl Wood and head of applications Karl Wong.
Call 1300 880 160
Start a chat
Schedule a call
